The ongoing resilience in the economy will likely spur discussions of a potential rate hike, as the Bank of Canada is expected to make its next interest rate announcement next week.
Meanwhile, slower inventory accumulations as well as declines in household investment and business investment in machinery and equipment weighed on growth. The household spending figures show spending up on both goods and services in the first three months of the year, after minimal growth in the previous two quarters.
The central bank paused its rate-hiking cycle earlier this year, keeping its key interest rate at 4.5 per cent -- the highest it's been since 2007.