Canada's economy cools in April

Canada'sgross domestic productwas unchanged in April after seven consecutive monthly increases.

A large decline in retail trade and smaller declines in manufacturing and utilities were offset by increases in mining, wholesale trade and, to a lesser extent, the public sector and construction, Statistics Canada said Wednesday.

"It looks like the growth sprint has ended, at least for now," said BMO economist Doug Porter, who was expecting a flat showing on the month.

The Canadian dollar reacted negatively to the news, losing 0.3 of a cent US, falling to 94.46 cents US.

Retail trade fell 1.7 per cent, a reversal of the 1.9 per cent gain seen in April. Manufacturing declined for the first time since August 2009, by 0.3 per cent.

Recovery losing steam

Canada's economy expanded at a torrid 6.1 per cent annual pace in the first quarter, a rate economists say is sure to slow moving forward. The Bank of Canada, in its latest forecast, expected a 3.8 per cent pace in the April-to-June period as a whole.

"After a rip-roaring start to the recovery, Canadas economy has clearly downshifted," BMO economist Benjamin Reitzes said.

On the positive side of the ledger, mining and oil and gas extraction increased 0.5 per cent, while wholesale trade advanced 0.6 per centin April.

Some tourism-related industries retreated in April, such as arts, entertainment and recreation services as well as accommodation and food services.

That mirrored the 1.7 per cent drop in overnight visitors in April that Statistics Canada previously reported.

"While the flat reading for GDP is certainly disappointing, and points to some loss of momentum, the weakness was contained to relatively few sectors, which is one bright spot," Reitzes said.