Canadian economy up 3.4 pct in qtr on strong spending

Canadian consumers kept spending strongly in the second quarter and were the biggest contributor to stronger-than-expected 3.4 percent annualized economic growth in the quarter, Statistics Canada said on Friday.
A surge in oil and gas exploration boosted June gross domestic product by 0.2 percent, down from 0.3 percent in May.
Analysts had expected growth to moderate to 2.8 percent in the second quarter, and they had expected the economy to stagnate in June.
Statscan said the economy grew 3.9 percent in the first quarter, revising its previous estimate of 3.7 percent.
The government statistics agency noted strength throughout the economy. Personal spending, particularly purchases of durable goods such as cars and household appliances, was the main motor of growth. But exports, business investment and housing construction also posted healthy gains.
Even the beleaguered manufacturing sector, reeling from job losses and a strong Canadian dollar, registered its first quarterly gain since the fourth quarter of 2005. Industrial production was up 0.4 percent.
Compared to the first-quarter of this year, Canada's economy grew 0.8 percent.