Economy stalls in April

Canada's economy didn't expand or contract at all in April, a slight pullback after a 0.3 per cent gain the previous month.

Gains in mining, retail, the public sector and utilities offset a decline in manufacturing, finance and other sectors, Statistics Canada said Thursday.

Economists had been expecting a drop of 0.1 per cent. Over the past 12 months, Canada's economy has expanded by 2.8 per cent.

Scotiabank economists Derek Holt and Karen Cordes Woods said that even beyond the flat overall growth, the details of the report showed weakness in the economy.

Mining activity increased by one per cent, the agency said, primarily on the strength of copper, nickel, lead and zinc mining. But coal was also a factor.

But that increase was offset by a 0.7 per cent decline in manufacturing, primarily durable goods.

The tsunami and earthquake that ravaged Japan on March 11 hit the Canadian automotive industry hard, since a major market for parts dried up. The 6.9 per cent decrease in motor vehicles and parts production was mostly due to supply disruptions as a consequence of the tsunami in Japan, Statscan said.

The goods-producing sector and the service-producing sector were equally flat.

"Expect another weak reading into May, and then a possible lift in June once supply shocks wear off," Scotiabank said.