Canada's economy saw an unexpected 0.2 percent annualized decline in the second quarter, government data showed Friday, as housing investment and consumption slowed.
Statistics Canada said the economic slowdown was "attributable to continued declines in housing investment, smaller inventory accumulation, as well as slower international exports and household spending."
Data showed a fifth consecutive quarterly decline in Canadian housing investment, the result of a sharp drop in new construction, combined with higher borrowing costs following an increase of the Bank of Canada's key interest rate.
Growth in household spending, a key indicator for Canada's central bank, slowed to 0.1 percent in the second quarter, with expenditures on new cars falling 9.5 percent.
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