OTTAWA -- Statistics Canada says the economy grew at an annual rate of 1.8 per cent in the second quarter, as companies increased investment in equipment and added substantially to their inventories.
The pace of growth was slightly higher than economists' expectations and nearly in line with the Bank of Canada projection for 1.9 per cent.
But it's the third quarter in a row for sluggish economic performance below two per cent.
In a note to clients, CIBC noted that housing investment was weaker than expected.
"Consumption growth was weak, as foreshadowed in earlier retail reports, rising by just over 1 per cent, not much different from the previous quarter’s pace. Net trade was a drag to growth as expected with exports slowing, while government current expenditure was also a drag," the note said.
Statistics Canada says investment in plant and equipment grew at its fastest pace since this time last year and non-farm inventories surged during between April and June.
But exports slowed and imports rose substantially,
In June, gross domestic product grew 0.2 per cent from May.
-- With files from The Huffington Post Canada
Also on HuffPost