2010.08.3109:52:00UTC+00Canadian Economy Loses Steam In Second Quarter

The Canadian economy grew at a slower pace in the second quarter compared to the first three months of the year, official data revealed Tuesday.

The relatively robust Canadian economy is losing momentum along with that of the the United States, the nation's largest trading partner.

Real gross domestic product grew by 0.5% in the second quarter, after increasing by 1.4% in the first quarter, Statistics Canada said.

Annualized GDP grew 2% during the second quarter, falling short of estimates calling for 2.5% expansion. In the first quarter the economy expanded by 5.8% on an annual basis.

On a monthly basis GDP grew in June by 0.2%, which is slightly better than the previous monthly increase of 0.1%. Manufacturing rose 1.3% in June, continuing its upward trend that started in the third quarter of 2009.

Looking at the quarterly data, consumer expenditures on goods and services, as well as business investment on residential structures, grew at a slower rate than in the first quarter.

Activity in the goods-producing industries significantly outpaced that of the services industries for a third month. The output of the goods-producing industries rose 1.9%, while that of the services industries edged up 0.1%.

Consumer spending on goods and services advanced 0.7% in the second quarter, slowing from the 1.0% gain recorded in the first quarter.

Personal income increased 1.2%, and the national saving rate was unchanged at 5.5%.

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