Canadas economy grows 0.1 per cent in June, first increase since July 2008

The Canadian Press ~ The News
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Canada's economy grew in June according to official data released this morning, the first monthly increase since July 2008.
The 0.1 per cent increase in inflation-adjusted GDP for June reported by Statistics Canada was below private-sector expectations of an 0.2 per cent increase in real gross domestic product.
Economists have been looking for evidence to support the Bank of Canada's assertion that this country's economy has begun to recover from the worst recession in decades and will show some growth in the third quarter.
Statistics Canada said the economy slipped 0.9 for the second quarter as a whole, spanning the months of April through June, but that was an improvement over the 1.6 per cent drop recorded in the first quarter of 2009.
June's growth was driven by higher activity in oil and gas, wholesale trade and real estate.
Decreases in metallic ore mines, manufacturing and, to a lesser extent, construction partly offset these gains.
The output of service industries rose 0.4 per cent in June, the largest increase since the start of the year.
Goods-producing industries registered a decline of 0.6 per cent, although that was less pronounced than those of the previous seven months.
Manufacturing declined 0.7 per cent in June. Durable goods manufacturing fell 1.4 per cent, while the manufacturing of non-durable goods grew 0.1 per cent.
The home resale market rebounded in June, producing an 8.3 per cent increase in the activities of real estate agents and brokers.
But the construction sector declined 0.5 per cent for the month, mainly because of a 1.5 per cent drop in home building.
For the second quarter as a whole, consumer spending rose 0.4 per cent. Spending on durable goods, especially autos, rose 1.5 per cent.
Housing sales also rebounded, boosting the real estate market after five consecutive quarterly declines.
Exports of goods and services and business investment in machinery and equipment were both down, but not as sharply as in the first three months of the year.
Second-quarter exports were down 5.2 per cent after falling 8.7 per cent in the first quarter. Most categories of goods declined, particularly machinery and equipment, industrial goods and materials, and energy products.
Imports fell 2.2 per in the second quarter. It was the fourth quarterly decrease in a row, but was not as steep as in the previous two quarters.
Nominal GDP - without adjusting for inflation - decreased 0.6 per in the quarter, a much slower decline than in the two previous quarters. Corporate profits fell 11 per cent, the third consecutive quarterly double-digit decline.
As was the case in the previous two quarters, energy, mining and financial industries all reported lower profits.
Personal income edged up during the quarter, after falling 0.9 per cent in the first quarter spanning January through March. Employment Insurance benefits increased by 23 per cent.
While income was up, the savings rate was 4.4 per cent, the lowest rate since 1994.

Organizations: Statistics Canada, Bank of Canada

Geographic location: Canada

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Recent comments

  • Nasty
    July 02, 2010 - 13:26

    Still no jobs to pay the bills. I guess the rich need to get richer first before the rest of the country can even begin to dig out from the collapse of big business and the credit industry. Make the average joe suffer just a little more, ya that will show the majority who is really calling the shots.

  • Harry Must Diet
    July 02, 2010 - 13:18

    It's called the Trickle Down Theory nate.

  • Nasty
    July 01, 2010 - 20:13

    Still no jobs to pay the bills. I guess the rich need to get richer first before the rest of the country can even begin to dig out from the collapse of big business and the credit industry. Make the average joe suffer just a little more, ya that will show the majority who is really calling the shots.

  • Harry Must Diet
    July 01, 2010 - 19:59

    It's called the Trickle Down Theory nate.