OTTAWA, Aug. 31 (UPI) -- Statistics Canada said Tuesday growth in the country's gross domestic product slowed sharply in the second quarter, dropping to 0.5 percent.
Canada's GDP grew 1.4 percent in the first quarter compared to the final quarter of 2009.
Consumer spending rose 0.7 percent in the second quarter, less than the 1 percent growth in January through March. Spending on automobiles dropped 2.9 percent while spending on furniture dropped to a 0.1 percent gain after three consecutive quarters of more than 1 percent gains.
For the third consecutive quarter, however, spending on home construction grew by more than 6 percent, climbing 6.9 percent in the second quarter over the first.
Statistics Canada said business inventories rose 3.5 percent, the largest gain since 2005. Exports grew, but less than imports, causing a net loss in international trade in the quarter.
Prices in Canada, meanwhile, grew 0.2 percent in the quarter, while incomes from labor rose 1.2 percent, giving Canadians a 0.5 percent gain in their purchasing power.
