Cdn. economy stagnates in April


Canada's economy saw no growth or contraction in April, Statistics Canada said Wednesday.

That compared to a 0.6% expansion of gross domestic product reported for March. Economists were expecting 0.2% growth in GDP for April.

It marked the first month in eight the Canadian economy has not expanded.

Statistics Canada said a "large decline" in the retail sector, and lesser contractions in manufacturing and utilities, were offset by gains in mining, wholesale, the public sector and construction.

Retail trade was down 1.7% in April, as demand dropped sharply for items such as automobiles and clothing.

Manufacturing output fell 0.3% in April, the federal agency said, the first decline since August last year. Non-durable goods, such as pharmaceuticals and food, were cited as the main cause of the lagging factory figures. Durable-goods manufacturing industries, such as machinery, vehicles and automotive parts, saw increased activity.

Oil-and-gas extraction output was up 0.5% in April and potash mining also saw gains, though output in mining sectors such as gold, silver and diamonds declined.

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