Canadian economy posts weakest back-to-back quarters of growth since 2015

However, overall growth was boosted by highest quarterly level of household spending in two years

Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on Friday, March 8, 2019. (THE CANADIAN PRESS/Justin Tang)

Canada’s economy expanded at an annualized pace of just 0.4 per cent in the first three months of the year, giving the country its weakest back-to-back quarters of growth since 2015.

The real gross domestic product reading for the first quarter followed a revised growth number of just 0.3 per cent in the previous quarter, Statistics Canada said Friday in a new report.

It was the slowest two-quarter stretch of growth since an oil-price plunge caused the economy to shrink over the first half of 2015.

Economists had expected growth at an annualized rate of 0.7 per cent for the first quarter, according to Thomson Reuters Eikon.

The Statistics Canada report said downward pressure on first-quarter growth was driven by weakness in net trade as imports increased 1.9 per cent and export volumes dropped one per cent for their first quarterly decrease since 2017.

Canada also saw a substantial contraction of 9.5 per cent in its exports of farm and fishing products as well as a 2.8 per cent drop in crude-oil shipments.

On the positive side, the agency said overall economic growth was boosted by the highest quarterly level of household spending in two years, following broad-based increases that included strength in auto purchases and audio-visual equipment.

The economy also saw an 8.7 per cent increase in business investments on equipment and machinery — the biggest jolt in 23 years. The surge was fuelled in part by significant investments in aircraft and other transportation equipment, the report said.

Looking ahead, the report’s month-to-month reading for March — the final month of the first quarter — suggested the second quarter could be off to a stronger start. March posted a 0.5 per cent increase compared to a 0.2 per cent contraction in February.

The first-quarter reading Friday was slightly higher than the Bank of Canada’s prediction of 0.3 per cent.

READ MORE: Trudeau touts economic record at Liberal fundraiser in Vancouver

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Plans for public boat launch to Sylvan Lake an eventual project

Lacombe County says they plan to work with surrounding municipalities on the project, eventually

Glass items no longer accepted in Sylvan Lake recycling program

The announcment was made Friday morning, caused by no market left for recycled glass

Sylvan Lake placed under severe thunderstorm warning

Environment Canada sent out the warning the afternoon of June 13

Walk for Common Ground sheds light on indigenous issues

Edmonton to Calgary walk includes 30 core walkers engaging communities along the way

PHOTO: Best of Sylvan gift card winner announced

The Sylvan Lake News ran a contest to find the Best of Sylvan one person drawn to win a gift card

10 facts about Father’s Day

Did you know that the special day for dads was first celebrated in 1910?

No business case for Trans Mountain expansion, says former environment minister

Cabinet is expected to announce its decision on the expansion of the Alberta-to-B.C. pipeline by Tuesday

Alberta Mountie found not guilty of dangerous driving causing pedestrian’s death

RCMP Const. Michelle Phillips also found not guilty of dangerous driving causing bodily harm

Three Albertans land ‘monster’ sturgeon in B.C.’s Fraser River

For angler who landed the exceptionally large sturgeon it was an ‘incredible dream come true’

Toronto Raptors and their diverse team celebrated worldwide

Team is made up of players from the U.S., Canada, Cameroon, the Republic of Congo, and Spain

Further murder charge laid after alleged targeted hits in two Alberta cities

Jimmy Truong, who is 27, has been charged with first-degree murder in the shooting of Louie Angelo Mojica

Pot edibles, topicals and extracts to hit shelves no earlier than mid-December: Ottawa

Health Canada wrapped its public consultation on the draft rules for cannabis products in February

We the North: Delirious fans celebrate as Raptors win NBA title

Supporters from all over Canada cheer Toronto’s triumph

Excited, anxious fans prepare for Raptors to play in Game 6 of the NBA Finals

The Raptors currently lead the Warriors 3-2 in the best-of-seven series

Most Read