continue to increase their profits even though
With
.
Operating income rose 3.8 per cent to $200 billion in the third quarter, according to data released Monday by Statistics Canada. This
over two years and follows a seasonally adjusted contraction of 2.4 percent in the second quarter.
In the financial sector, earnings before interest and taxes rose six percent to $96 billion, helped by lower provisions for credit losses and higher noninterest income in banking, the agency said.
Non-financial industries also increased their operating profit by 1.9 percent between July and September, with gains recorded in 25 of 39 subcategories. Profits rose in 10 of the country's 14 manufacturing industries.
Data shows Canadian companies are generally holding up well despite ongoing pressure
and increased unemployment.
Key tariffs remain in place on steel, aluminum, cars and timber, and the central bank expects meager economic growth in the second half of 2025 as business investment and exports weaken.
At the same time, many goods exported by Canada to the United States are exempt from tariffs, provided they fall within the scope of the law.
between the United States, Canada and Mexico, resulting in the country maintaining a relatively low effective tariff rate.
“The tariffs are a brutal but minor blow,” said Fred Demers, chief multi-asset strategist at BMO Global Asset Management.
“Firms are protecting strong profits and investors should feel comfortable,” he said.
—With assistance from Mario Baker Ramirez.
