WRAPUP 1-Consumer spending, exports underpin Canada's Q2 GDP recovery

Fri Aug 29, 2014 11:19am EDT
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* Q2 GDP growth annualized +3.1 pct; +0.9 pct Q1

* Bank of Canada had forecast growth of 2.5 pct; market +2.7 pct

* June GDP grew by 0.3 pct; forecast at 0.2 pct

* Analysts encouraged by recovery, export contribution

By Randall Palmer

OTTAWA, Aug 29 (Reuters) - Strong consumer spending and a jump in exports helped the Canadian economy bounce back from a weather-restrained first quarter, with annualized growth of 3.1 percent in the second quarter after a downwardly revised 0.9 percent in the first.

The Statistics Canada data on Friday showed gross domestic product growing at its fastest pace since the third quarter of 2011, beating the Bank of Canada's July forecast of 2.5 percent and exceeding market expectations of 2.7 percent.

First-quarter growth was originally reported at 1.2 percent.

Second-quarter growth was shy of the 4.2 percent GDP expansion reported in the United States this week. For the first six months of 2014, Canada's economy grew at a faster clip because, while both countries were hurt by bad weather, the U.S. economy shrank in the first quarter.   Continued...