June 28, 2019 / 12:39 PM / a year ago

UPDATE 1-Strong Canada April GDP suggests economic slowdown is ending

(Adds details of release, background)

OTTAWA, June 28 (Reuters) - Canada’s economy grew by a greater-than-expected 0.3% in April, the second strong performance in a row, suggesting a recent slowdown is ending, Statistics Canada data indicated on Friday.

Analysts in a Reuters poll had predicted GDP expansion of 0.1% in April after a 0.5% increase in March. The overall two-month growth was the greatest since November and December 2017.

The Bank of Canada - which is due to announce its next interest rate decision on July 10 - has repeatedly said it believes the economy will recover from recent challenges posed by low oil prices, weak household spending and trade tensions.

Mining, quarrying and oil and gas extraction posted a 4.5%gain. Oil sands extraction jumped by 11.0% as facilities in energy-rich Alberta scaled up production to take advantage of the government’s decision to ease production restrictions.

The manufacturing sector though contracted by 0.8%, the largest decline since August 2017, in part due to a 7.7% drop in motor vehicle manufacturing as a result of temporary shutdowns at some plants and atypical production schedules.

Reporting by David Ljunggren Editing by Chizu Nomiyama

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