Canada's Economy Cools In Second Quarter

As consumer spending and business investment fell flat and the housing market cooled, Canada's economy slowed in the second quarter, Statistics Canada said Aug. 31. Gross domestic product (GDP) advanced 0.5%, following a robust 0.9%increase in the first quarter, the government agency said.

The economy grew at an annualized rate of 2% in the second quarter, "a sharp deceleration from the 3.6 percent pace set during the previous quarter," the agency said. Analysts had predicted a 2.3% growth pace.

Economic activity in June was "essentially unchanged" from May, as the production of goods declined, offsetting gains in service industries, Statistics Canada said.

Copyright Agence France-Presse, 2006