(RTTNews) - Canada's relatively robust economy stalled in April, reflecting a decline in manufacturing and finance. Real gross domestic product was unchanged in April after increasing 0.3 percent in March, according to data released by Statistics Canada on Thursday.
Economists expected the economy to contract by 0.1 percent, but significant increases in metal and coal mining helped keep GDP nearly unchanged.
Mining rose 1.0 percent in April, primarily on the strength of copper, nickel, lead and zinc mining.
However, motor vehicles and parts production dropped 6.9 percent, mostly due to supply disruptions as a consequence of the tsunami in Japan.
Both the goods-producing and the services sectors remained unchanged in April. Retail trade was up 0.5 percent amid increases at furniture stores and new car dealers.
It is expected that the economy will rebound from April's lackluster performance, as the manufacturing sector ramps up.
Yesterday, Statistic Canada said its Consumer Price Index was up 3.7 percent in May from a year earlier, putting pressure on the Bank of Canada to hike interest rates.
The largest increase in eight years came as a shock to economists expecting annual inflation to match the 3.3 percent rise seen in April.
