Real GDP flat after seven straight months of expansion
Canada's economy unexpectedly stalled in April on a slide in retail sales, suggesting the pace of growth will slow in the second quarter after the fastest growth in a decade in the first quarter.
Statistics Canada on Wednesday said real gross domestic product stayed flat in the month after seven straight months of expansion, disappointing market expectations of 0.2 per cent growth.
Consumers bought fewer new cars and clothing in April, sending sales in the retail sector down by 1.7 per cent, eroding most of the 1.9 per cent growth the previous month.
Smaller declines in manufacturing and utilities were offset by gains in mining, wholesale trade and non-residential constructions, Statscan said.
Canada's economy began to emerge from a mild recession late last year, growing at an annualized rate of 4.9 per cent in the fourth quarter and 6.1 per cent in the first quarter of this year. The Bank of Canada projects second-quarter growth of 3.8 per cent and sees the rate continuing to moderate over the course of the year.
— Reuters
