(Adds details on exports, housing market, business investment)
OTTAWA, May 31 (Reuters) - Canada's economic growth
accelerated less than expected in the first three months of the
year and appeared to slow heading into the second quarter, data
from Statistics Canada showed on Tuesday.
Gross domestic product grew at a 2.4 percent annualized rate
in the first quarter, shy of analysts' expectations for 2.9
percent. Still, that marked a rebound from a downwardly revised
0.5 percent in the fourth quarter of 2015.
Exports of goods and services grew 6.9 percent annualized,
lifted by a rise in exports of motor vehicles and parts.
Increased export activity is key to the central bank's outlook.
The housing market, which has been robust in the years since
the financial crisis, continued to lift the economy with
business investment in residential structures up 11.2 percent as
activity in new home construction, resales and renovations all
increased.
But weak business investment elsewhere still weighed on an
economy that has struggled to find momentum since the slump in
oil prices put it in a mild recession last year. Business
investment in non-residential structures, machinery and
equipment was down 9.7 percent.
The economy also showed signs of losing steam at the end of
the quarter with monthly growth declining by 0.2 percent in
March, slightly worse than expectations for a dip of 0.1
percent.
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Graphic - Canada monthly GDP, exports to the U.S. http://link.reuters.com/jev87s
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
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