Canada’s economy grew at 0.1 per cent in April, Statistics Canada reports

OTTAWA – Canada’s real gross domestic product increased 0.1 per cent in April – the fourth month of growth in a row, with service industries behind much of the growth, Statistics Canada reported Friday.

There were gains in wholesale and retail trade, finance and insurance, arts and entertainment and the transportation and warehousing sectors. That was partially offset by a decline in the public administration sector.

“In contrast, goods production decreased 0.3 per cent as a result of a notable decline in mining, quarrying, and oil and gas extraction,” Statistics Canada said.

“Declines were also recorded in construction, while manufacturing, utilities and the agriculture and forestry sector rose.”

The overall increase for April was in line with analyst estimates, and followed increases of 0.2 per cent in March and 0.3 per cent in February.

TD economist Francis Fong says the April numbers get the second quarter off on a more modest note than the 2.5 per cent annualized growth rate posted in the first quarter.

The April results included a 3.4 per cent gain in the arts and recreation industry – attributed to the extended NHL season, which had a delayed start in January due to a labour dispute.

“While there were clearly some temporary factors driving April’s headline gain, the overall picture is reflective of a more restrained second quarter for the Canadian economy,” Fong wrote in a commentary.

“Domestic conditions remain moderate as households continue to curb their pace of debt growth. Meanwhile, the sequester in the U.S. (a series of automatic government spending cuts) is expected to temporarily weigh on economic growth south of the border – this, in turn, will keep a lid on export growth in Q2.”

TD is estimating the full second quarter, which ends June 30, will show 1.6 per cent growth on an annualized basis. Statistics Canada will issue its second-quarter GDP report in late August.