UPDATE 1-Canada economy grows at fastest in a decade

* Consumers, housing, trade fuel fast growth

* GDP grows at annual rate of 6.1 percent in Q1

* March GDP expands 0.6 percent vs February
(Adds details)

OTTAWA, May 31 (BestGrowthStock) – Strong consumer spending and
exports helped Canada’s economy expand in the first quarter at
the fastest rate in more than a decade, fueling expectations
the Bank of Canada will hike interest rates on Tuesday.

Gross domestic product grew at a 6.1 percent annual rate,
the biggest jump since the fourth quarter of 1999, and by 1.5
percent compared with the fourth quarter of last year,
Statistics Canada said on Monday.

Analysts had predicted 5.9 percent annualized GDP growth in
the period. Statscan revised the fourth-quarter growth rate to
4.9 percent from 5.0 percent previously.

Consumers continue to be a key driver of the recovery from
mild recession while international trade also contributed to
growth for the third straight quarter. The housing market
remained hot in the first quarter because of heavy investment
in new construction and home renovations by owners taking
advantage of a tax credit that expired on Feb. 1

In March, most industries increased production to drive
growth of 0.6 percent from February, surpassing the consensus
forecast of 0.5 percent. Manufacturing, mining and energy led
the gains.

Most forecasters polled by Reuters expect the Bank of
Canada to raise rates by 25 basis points on June 1 to 0.50
percent. For details see [ID:nN25118365]

Stock Analysis
(Reporting by Louise Egan; Editing by Padraic Cassidy)

UPDATE 1-Canada economy grows at fastest in a decade