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5 Things to Know Today: Your Canadian Money Brief — June 2, 2026

  Tuesday, June 2, 2026  |  MoneySavings.ca Markets are mixed, a big government cheque is days away, and the Bank of Canada is just over a week from its next rate call. Here's what every Canadian should have on their radar this morning. 1 of 5 TSX Inches Lower as Gold Slips and Financials Feel the Heat The S&P/TSX Composite closed Monday at 34,735 points, down about 0.10% from Friday's session. It was a tale of two sectors: financials dragged on the index as RBC and TD each lost close to 1%, with CIBC shedding nearly 2%, while gold miners also pulled back — Agnico Eagle fell 3.5% and Barrick dropped close to 3%. On the bright side, energy stocks surged as oil prices rallied, with Canadian Natural Resources up nearly 3% and Suncor gaining over 3%. Shopify also climbed roughly 2% on enthusiasm around AI chip advances. Year-to-date, the TSX is up about 9.5% — trailing Japan's Nikkei (+31.8%) but ahead of the S&P 500 (+11.0%) for the period through June 1. 💡 Money Ti...
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Canada’s economy shrinks in Q3 amid export and consumer woes

 


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Canada’s economy shrinks in Q3 amid export and spending woes

Canada’s economy contracted by 1.1 per cent on an annualized basis in the third quarter of 2023, according to Statistics Canada. This was a much weaker result than expected by analysts and the Bank of Canada, which had forecast a slight growth of 0.1 per cent and 0.8 per cent, respectively.

The main factors behind the economic decline were a drop in exports, a slump in business investment, and a stagnation in consumer spending. Exports fell by 5.1 per cent, reflecting lower shipments of energy products, motor vehicles, and aircraft. Business investment decreased by 10.1 per cent, as firms reduced their spending on machinery and equipment, intellectual property, and non-residential structures. Consumer spending was flat, as households saved more of their income amid rising interest rates.

The only bright spots in the third quarter were government spending, which increased by 7.3 per cent, boosted by a one-time GST/HST credit payment, and residential housing investment, which rose by 8.3 per cent, driven by a surge in new construction.

The Canadian economy also performed poorly compared with the U.S. economy, which grew by 5.2 per cent in the same period. Canada has been more sensitive to the impact of higher interest rates, which have been raised by the Bank of Canada to 5 per cent from 0.25 per cent since early 2022. The central bank has recently signalled that it may pause or reverse its tightening cycle, as inflation has eased and economic growth has faltered.

Some economists believe that the third quarter contraction was a temporary setback and that the economy will rebound in the fourth quarter and beyond. Statistics Canada estimated that GDP grew by 0.2 per cent in October, indicating a modest recovery. However, others warn that the economy may face more headwinds in the new year, such as the ongoing supply chain disruptions, the spread of the new COVID-19 variant, and the uncertainty over the federal fiscal policy.

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