20 Aug 2010

Economic growth slows in Canada

8:54 am on 20 August 2010

Economic growth in Canada slowed in July amid a decline in the housing market.

The world's tenth largest economy grew 0.4% last month, down from 0.7% in June, according to Statistics Canada.

Sales of durable retail goods declined, while the manufacturing sector saw a 2.2% growth in durable goods orders.

The BBC reports a leading index of 10 economic components has averaged 0.9% growth per month over the past 12 months. Growth rarely exceeds 1%.

The slowdown was caused largely by a 4.1% drop in the housing index, which is composed of new housing starts and house sales.

Coinciding with the decline was a 0.6% drop in retail sales, including furniture, appliances and other durable household goods.