First quarter GDP advanced 0.9% twice the pace of last quarter


Canadian economy picked up steam in the first quarter of 2007 as real gross domestic product (GDP) advanced 0.9%, more than twice the pace of last quarter.

A slight pick-up in consumer spending and an inventory build-up resulting from strong production fuelled the advance. Investment in fixed capital slowed and exports eased.
In March, economic output was up 0.3%, after increasing 0.4% in February and 0.1% in January. Service-producing industries surged ahead in March while the output of goods-producing industries fell.
While final domestic demand continued to provide substantial support to the economy (+0.8%), it was overtaken by growth in GDP for the first time in 10 quarters. An easing in domestic spending activity resulted from reduced investment in non-residential structures and equipment. This was partly offset by an acceleration in housing investment and by increased consumer spending, in particular on clothing, household furnishings and leisure items.


First quarter GDP advanced 0.9% twice the pace of last quarter


Statistics Canada
6/18/2007 2:58:29 PM