Canadian economy ‘trudging along’ as April growth disappoints
OTTAWA – Statistics Canada says the economy grew by 0.1 per cent in April, the same pace as in March.
Economists had expected a gain of 0.2 per cent, according to Thomson Reuters.
“The Canadian economy is trudging along at a pace of right around 2 per cent [annualized], simply not strong enough to cut into the unemployment rate or to get any pulses racing,” Doug Porter, chief economist at Bank of Montreal, said.
Statistics Canada says the output of service industries increased 0.3 per cent in April, led by wholesale and retail trade. The output of goods-producing industries fell 0.3 per cent as a result of declines in all major sub-sectors except manufacturing.
Retail trade grew 0.8 per cent in April, following a 0.1 per cent decline in March.
“What’s required now is for the U.S. economy to find a higher gear, because the domestic sources of growth in Canada are looking pretty tired,” Porter said.
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Wholesale trade rose 1.3 per cent in April, led by increases in machinery, equipment and supplies as well as building materials and supplies.
After increasing for three consecutive months, mining, quarrying and oil and gas extraction declined 0.6 per cent in April.
–With files from Canadian Press