by MorinvilleNews.com Staff
The Canadian economy continued to experience modest growth in the second quarter of 2024, according to the latest Main Street Quarterly report by the Canadian Federation of Independent Business (CFIB). The report highlights that the economy grew by 2.0% in Q2, following a 1.7% increase in Q1. Growth is expected to continue at a similar rate in Q3, provided inflation remains stable, and the central bank continues to cut rates.
The Consumer Price Index (CPI) inflation dropped to 2.8% in Q2 and is projected to decrease further to 2.4% in Q3. Meanwhile, the national private sector job vacancy rate fell to 3.3% in Q2, representing 458,000 unfilled positions. Businesses in the personal services sector, especially those in repair and maintenance and personal care services, are significantly affected by borrowing and product input costs. The overall cost of doing business remains high, with total unit costs spiking by 26% during 2022 and staying elevated since.
CFIB’s chief economist, Simon Gaudreault, noted that while the economic growth in the first half of 2024 has boosted long-term business optimism, small businesses continue to struggle with high costs, including wages, energy, and interest rates. Despite a surge in private investment in Q1, it declined to 2.8% in Q2 due to ongoing uncertainties and cost pressures.
For more details, read the full Main Street Quarterly report.
