Canada GDP for Q4 annualized 2.6% versus 1.8% estimate

• Prior 1.0%
• GDP YoY annualized 2.6% vs 1.8% estimate
• GDP MoM 0.2% versus 0.3% estimate

Household spending up

• Q4 2024 Household Spending: +1.4%, strongest growth since Q2 2022.
• Key Q4 Drivers: New trucks, vans, SUVs; financial services; telecom services.
• 2024 vs. 2023 Household Spending: +2.4% (Goods: +1.6%, Services: +3.0%).
• Top 2024 Contributors: New vehicles, rent, telecom, financial services.

Residential construction grows at highest since Q1 of 2021

• Per Capita Spending: +1.0% in Q4 2024, -0.6% for full year 2024.
• Q4 2024 Residential Construction: +3.9%, strongest since Q1 2021.
• Key Q4 Drivers: Ownership transfer costs (+12.5%), new construction (+2.2%), alterations/improvements (+1.5%).
• Mortgage Growth: +1.3% in Q4, strongest quarter of the year.
• 2024 Annual Residential Construction: -1.1% (vs. -8.5% in 2023).
• Annual Breakdown: Ownership transfer costs +2.8%, alterations/improvements -4.7%, new construction +0.1%.

Business investment rises

• Q4 2024 Business Investment: +0.7%, led by building construction (+1.6%).
• Machinery & Equipment Investment: +4.2%, driven by industrial machinery, aircraft, and transportation equipment.
• Intellectual Property Investment: +0.6%, mainly from custom and own-account software.
• 2024 Annual Business Investment: -1.8%, led by building construction (-3.4%).
• Engineering Structures: -1.1%, impacted by Trans Mountain Expansion Project completion.
• Machinery & Equipment: -2.1% in 2024.
• Intellectual Property: -0.1% (Software +1.3%, R&D -2.3%, Mineral Exploration -4.2%).

This article was written by Greg Michalowski at www.forexlive.com.