The growth of Canada’s economy may have slowed in the second quarter but it is still better than the U.S., according to Statistics Canada.
In a report released Tuesday morning, the national statistical agency said Canada’s real gross domestic product (GDP) grew 2% in the second quarter compared with the U.S.’s 1.6% growth rate in the same period.
Canada’s second quarter increase was less than half of the 5.8% increase recorded in the first quarter of the year.
Statistics Canada said consumer spending on goods and services and investment in residential buildings grew at a slower rate during the second quarter.
Consumer spending was up 0.7% in the second quarter compared with a 1% gain in the first, and expenditures on motor vehicles fell 2.9% in the second quarter.
Meanwhile, housing investment posted its slowest quarterly rate of growth, 0.3%, since 2009’s first quarter. Renovation activity was also down following four quarters of growth.
Canada’s oil and gas industry led the second quarter increase in GDP, StatsCan said, along with gains in manufacturing, banking and the public sector. Declines in the home resale market and in retail and wholesale trade offset that growth.
StatsCan said the price of goods and services made in Canada rose 0.2% overall in the second quarter.
Despite the sluggish economic news, Canadian markets were up this morning.
The benchmark S&P TSX composite index increased 65.12 points to 11,960.67, while the venture rose 6.67 points to 1,503.84 in midday trading.