Canada's economy grew by 0.1 per cent in April, about half the pace economists were expecting.
At an annual pace, Canada's economy is on track to grow 2 per cent this quarter, slightly below the Bank of Canada's forecast, CIBC said in a client note. It described the GDP report as "disappointing."
The Canadian Press reports:
OTTAWA -- The Canadian economy remained in low gear in April as the key resource and construction sectors were stuck in the spring mud.
Statistics Canada said Monday 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 two per cent, simply not strong enough to cut into the unemployment rate or to get any pulses racing,'' BMO Capital Markets chief economist Douglas Porter said.
"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.
Statistics Canada said the output of service industries increased 0.3 per cent in April, led by wholesale and retail trade. However, the output of goods-producing industries fell 0.3 per cent as a result of declines in all major sub-sectors except manufacturing.
The mining, quarrying and oil and gas extraction sector fell 0.6 per cent in April.
Oil and gas extraction dropped 0.8 per cent due to lower oil and natural gas production, while mining and quarrying fell 1.3 per cent. Support work for mining and oil and gas extraction increased 1.9 per cent.
Construction fell 0.6 per cent for the month with a notable drop in residential building and repair work.
Wholesale trade rose 1.3 per cent in April, led by increases in machinery, equipment and supplies as well as building materials and supplies.
Retail trade grew 0.8 per cent in April, following a 0.1 per cent decline in March.
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