31 August 2009 at 15:31 GMT
The Canadian economy continued to shrink in the second quarter at an annualized rate of 3.4% versus expectations of 3.0%, but at a slower rate than previously. It fell by an annualized rate of 6.1% in the first quarter of 2009 (revised down from 5.4%).
Canadian consumer spending strengthened across the board with motor vehicle sales the main contributor. Government expenditure and spending on financial services also increased during the second quarter.
However, imports continued to fall for the fourth straight quarter, this time by 2.2%, thus being more than offset by the 5.2% decline in exports. The national saving rate fell again to 4.4% hitting a new low since 1994.
The month-on-month figure of real GDP came out positive at 0.1% for the first time since July 2008, but did however not manage to beat expectations of 0.2%. The report followed the trend of a slowing contraction of the Canadian economy.
Both equity and FX market showed little movement following the release.