This report does not constitute a rating action. The latest business surveys suggest Canada's GDP growth momentum slowed to a trend-like pace in the third quarter after broad-based strength lifted growth well above trend in the second quarter. S&P Global Ratings thinks higher inflation, trade uncertainty, and weaker business sentiment point to a limited upside to growth in the next few months. Canada's economy regained momentum in the second quarter. Real GDP (expenditure-based) grew at a solid 3.3% annualized pace, and growth was broad-based. Household spending and private fixed investment continued to be the primary drivers. Net trade also added strongly to growth during the quarter with a large swing-- to a big positive second quarter from a large negative
