Canada's GDP Up 1.8% in Second Quarter

Canada's economy grew 1.8% in the second quarter, fueled by continued business investment in manufacturing plants and equipment, a government agency said Friday. The figure beat analysts' expectations. Statistics Canada said business investment in mainly transportation equipment and industrial machinery rose 2.3%, continuing a string of consecutive increases that began in 2010.  

Canada's economy grew 1.8% in the second quarter, fueled by continued business investment in manufacturing plants and equipment, a government agency said Friday.

The figure beat analysts' expectations.

Statistics Canada said business investment in mainly transportation equipment and industrial machinery rose 2.3%, continuing a string of consecutive increases that began in 2010.

The mining, oil and gas sector, as well as construction, were the main contributors to overall growth, it said.

Gains also were recorded in manufacturing, agriculture, wholesale trade, the finance and insurance sector and professional services, while retail trade and utilities declined.

An increase in crude-petroleum production was partly offset by a decrease in natural-gas extraction.

Increased output at potash, as well as copper, nickel, lead and zinc mines, outweighed declines at coal mines.

Consumer spending increased slightly. Canadians bought less clothing and shoes and fewer cars, but spent more on furniture and carpets.

Exports of goods fell slightly, led by agriculture and fish products, while imports increased for a third consecutive quarter.

Corporate profits fell 4.7% in the second quarter, following a decline of 3.7% in the previous quarter.

Meanwhile, wages rose 1.2%, up from the pace in the previous quarter of 0.7%. Personal saving increased 18%.

Copyright Agence France-Presse, 2012

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