Canada edges out of recession in third quarter
Canada struggled out of recession with modest growth in the third quarter, as a jump in consumer spending provided the first economic expansion in a year, Statistics Canada said Monday.
The expansion was 0.1 percent for the quarter, or 0.4 percent on an annualized basis, following three quarters of economic contraction.
The growth was weaker than analyst expectations of a 0.6 percent annualized pace of expansion and less than the Bank of Canada forecast for 2.0 percent growth.
Consumer spending on goods and services rose 0.8 percent, the biggest increase since the fourth quarter of 2007, led by gains in sales of automobiles and other durable goods.
Business investment in machinery and equipment grew 5.9 percent in the quarter, following five quarters of decline, boosted by outlays on motor vehicles and industrial machinery.
Trade was a drag on growth, although volumes increased. Exports rose 3.6 percent, led by the energy sector. But imports surged 8.0 percent amid a big increase in imports of auto products.
Copyright 2009  AFP Global Edition
