Canadian Economy Growth Slows In Q2

Canada's real gross domestic product (GDP) declined 0.1% in the second quarter, following a 0.9% increase the previous quarter. The decline in the second quarter was largely a result of a 2.1% drop in exports. Final domestic demand rose 0.7%. On a monthly basis, real GDP by industry increased 0.2% in June., Statistics Canada 8/31/2011 2:38:08 PM

Export volume declined 2.1% after two quarters of gains. Energy exports contributed the most to this second quarter decline, down 6.7%.

Business investment in plant and equipment increased 3.7%, the sixth consecutive quarterly advance. Housing investment edged up 0.2%.

Consumer spending on goods and services increased 0.4%, after remaining unchanged in the first quarter. Expenditures on durable goods rose 0.4%.

Goods production declined 0.8% while service production increased 0.3% in the second quarter. Oil and gas extraction, and to a lesser extent manufacturing and the finance and insurance sector, were the main sources of the decline in the quarter. Increases were recorded in the public sector, professional services, construction, and retail trade.

Oil and gas extraction decreased 3.6% in the second quarter. Wildfires in Northern Alberta as well as maintenance shutdowns reduced petroleum production. Extraction of natural gas also decreased. Output in the manufacturing industries declined 0.9%, as both non-durable and durable goods manufacturing fell. The 6.0% decrease in motor vehicle and parts production was partly attributable to a supply disruption caused by the tsunami in Japan.

Canadian Economy Growth Slows In Q2