Canadian Business Investment Falls 16%

Not good.

The latest Q2 GDP numbers are in.

As I reported earlier, GDP in Q2 is up 3.7%.

However, the underlying numbers are concerning, and there appears to be trouble ahead.

The most concerning number is the huge drop in Canadian business investment.

Business investment in Q2 fell a stunning 16% on an annualized basis.

That wiped out all Q1 gains, meaning business investment for the year is negative.

The big concern is that dropping business investment means people are looking to the future, and seeing reasons to cut back on investment, pointing to a serious drop in economic confidence.

In addition to the huge drop in business investment, household consumption is almost stagnant.

As a result, domestic demand – the key driver of economic growth in Canada – is now falling.

So, beyond the headline GDP number, Canada is facing some very serious economic problems, and the fall in business investment is a huge warning sign.

Spencer Fernando

Photo – YouTube

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D.D.
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D.D.

No wonder people want to watch their money under the Trudeau government.

NancyW
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NancyW

The one time exports so high is probably the companies selling or moving their equipment to their new homes and businesses in the USA, where they still have a chance to grow. 16% is a huge amount of business to lose, Trudeau and the whole wasteful debts by the left must go, and we must fight to get our country back. Thank you Spencer for the truth.

old white guy
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old white guy

How did we get an up number on anything. The country and the economy are circling the bowl we just refuse to see it.

Shawn Harris
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Shawn Harris

After four years of Trudeanomics, Canada and Canadians are now even further behind than when Harper was PM. We are now as a nation further in debt, have higher taxes, endless deficits,our economic foundation,the oil industry is under constant and severe threats from Trudeau and his Liberals with their anti oil, anti business policies and now the public having seen their once full time, long term well paying stable jobs disappear, have decided to fold their arms and close their wallets; is it any wonder then that if not for a very large and possibly short term increase in exports,… Read more »