- WSJ.com Canada's Economy Logs Fastest Growth In Past Six Quarters June 1, 2006
DOW JONES REPRINTS This copy is for your personal, non-commercial use only. To order presentation-ready copies for distribution to your colleagues, clients or customers, use the Order Reprints tool at the bottom of any article or visit: www.djreprints.com. See a sample reprint in PDF format. Order a reprint of this article now. Canada's Economy Logs Fastest Growth In Past Six Quarters By NIRMALA MENON June 1, 2006; Page A6 OTTAWA -- The Canadian economy beat expectations, accelerating at the fastest pace in six quarters during January through March. The pace was driven by consumer spending and investment in housing, according to the government's statistics agency. Gross domestic product expanded 0.9% on a quarterly basis or an annualized 3.8%, from an upwardly revised 2.6% in the previous three months, Statistics Canada said yesterday. It was the fastest rate since the third quarter of 2004, though slower than the U.S. economy, which grew at an annual rate of 5.3%. Economists had expected the Canadian economy to expand 3.0% in the first quarter. The growth also beat the Bank of Canada's projection a of 3.2% increase and is significantly above the bank's assessment of potential output growth of 2.9% for 2006. "A jump in household demand, particularly consumer spending on durables and housing, was behind most of the first quarter advance," the agency said. Consumer spending, which accounts for about 55% of GDP, rose at an annual rate of 4.6%, up from 3.6% in the fourth quarter of 2005. Statistics Canada said domestic demand rose at a 5.0% annual rate in the first quarter, faster than the 4.7% pace of the previous three months. The central bank expects domestic demand to be the main driver of growth through to 2008. Write to Nirmala Menon at [e-mail]1 URL for this article:...