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CANADA-GDP-GROWTH-INDICATOR
Canada economy slows, growing 1.3 pct in Q1
OTTAWA, June 1, 2018 (AFP) – Canada’s economy slowed in the first three
months of the year, growing at an annualized rate of 1.3 percent, according
to official data released Thursday.
Statistics Canada pointed to a deceleration in household spending, lower
exports of non-energy products as well as a decline in housing investment for
the pullback in economic activity.
After posting growth of 1.7 percent in the previous quarter, and other
indicators suggesting the economy was chugging along, analysts had forecast
gross domestic product (GDP) would rise to 1.9 percent at the start of 2017.
But, the government statistical agency said GDP was dragged down by a drop
in housing investment, marking the largest decline since the 2009 financial
crisis, and lower resale activity due in part to the roll-out in January of
new stricter mortgage rules.
Consumer spending also decelerated for a third consecutive quarter. Goods
purchases including passenger cars were flat, while spending on services rose
only 0.5 percent in the quarter.
Sales of medium and heavy trucks, buses and other motor vehicles and
industrial machinery and equipment were up in the quarter.
Mineral exploration and evaluation rebounded and software sales
accelerated.
Exports of goods also edged up 0.2 percent, with growth in crude oil and
bitumen and motor vehicles and parts partially offset by a sharp decline in
refined petroleum energy products.
Imports, meanwhile, rose by 1.2 percent, led by passenger cars and light
trucks, tires, motor vehicle engines and parts and basic chemicals and
industrial chemical products.
Imports of services — including for commercial, transportation and travel
— also increased.
“The Canadian economy looked decidedly more sluggish than where
expectations had it pegged for Q1,” commented Royce Mendes, an analyst at
CIBC Economics.
“While the quarter was a miss, the final month of the period showed signs
of strength,” he added, noting that March GDP rose slightly, “signaling a
healthy handoff for Q2.”
He cautioned, however, that the March uptick was largely based on a rise
in the volatile oil and gas sector.
BSS/AFP/HR/1005