Labour productivity of Canadian businesses rose 1.4% in the first quarter-the largest gain since the second quarter of 2014 (+1.8%) and the second time in three quarters that productivity growth exceeded 1.0%.

Despite fewer hours worked in the first quarter, business output continued to grow rapidly.

The real gross domestic product (GDP) of businesses rose 1.1% in the first quarter, up slightly from the 0.8% gain the previous quarter. Every major industrial sector except agriculture and forestry increased production in the first quarter. Both goods-producing and service-producing businesses increased their pace of production.