Economy contracts in second quarter as higher interest rates take hold

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Economy contracts in second quarter as higher interest rates take hold
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OTTAWA — The Canadian economy appeared to stall in the second quarter as investment in housing continued to fall, led by drop in new construction. Statistics Canada said Friday the economy contracted at an annualized rate of 0.2 per cent in the second quarter. The agency also revised its reading for growth in the first quarter to an annual pace of 2.6 per cent, down from 3.1 per cent. The decline in the second quarter came as housing investment fell 2.1 per cent to post its fifth consecutive qua

OTTAWA — The Canadian economy appeared to stall in the second quarter as investment in housing continued to fall, led by drop in new construction.

The agency also revised its reading for growth in the first quarter to an annual pace of 2.6 per cent, down from 3.1 per cent. The weakness in the second quarter was also attributed to lower inventory accumulations, as well as slower growth in exports and household spending. Growth in real household spending slowed to 0.1 per cent in the second quarter compared with 1.2 per cent in the first quarter.

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