Statistics Canada says the economy edged back 0.1% in April, hurt by weakness in the mining and energy sectors, to post the fourth consecutive monthly decline.
Economists had expected the country's real gross domestic product to gain 0.1%, according to Thomson Reuters.
The pullback for April follows the first quarter which saw the economy contract at an annual pace of 0.6%.
Statistics Canada says a decrease in the output of goods-producing industries outweighed an increase by the service sector.
Weakness in the mining, quarrying, and oil and gas extraction sectors led to goods production to drop 0.8% in April.
Service-providing industries grew 0.3% in April, helped by wholesale trade.