Canadian economy falters

OTTAWA, March 3 (UPI) -- The Canadian economy faltered in the fourth quarter of 2007, Statistics Canada reported Monday.

The economy grew at a 0.8 percent rate in the fourth quarter, just ahead of the rate in the United States, which registered a 0.6 percent growth rate, the report said.

Exports contributed to the slowing rate, falling 2.2 percent in the fourth quarter with declines reported in many sectors. Exports in machinery and automotive industries declined, while the Canadian dollar rose against the U.S. dollar and several vehicle assembly plants shut down during the quarter.

Consumer spending increased with a 4.3 percent jump in spending on vehicles. Canadian spending on travel also increased significantly in the quarter, the report said.

Service expanded 0.7 percent, while the production of goods contracted 0.9 percent, the report said.

Canadian homeowners were also caught in a crunch, as the report indicates personal debt reached 116.4 percent of disposable income.