According to new data from Statistics Canada, nominal GDP increased 0.1% in the second quarter, after a 0.5% gain in the first quarter. The growth in incomes slowed considerably in the first half of 2012 to 0.3%, on average, compared with 1.5%, on average, in the second half of 2011.
Labour income rose 1.2%, up from the pace in the previous quarter of 0.7%. Wages in goods-producing industries advanced 1.8%, twice the pace in the first quarter (0.9%).
Personal saving increased 18% in the second quarter, as growth in personal income far outpaced that of personal outlays. The personal saving rate moved up to 3.6% in the quarter. It has remained below 4.0% since the second quarter of 2011.
The national saving rate was 7.5%, similar to the 7.3% rate of the previous quarter. This was the highest national saving rate since 2008.
Expressed at an annualized rate, real GDP expanded 1.8% in the second quarter, matching the rate of the previous quarter. By comparison, real GDP in the United States grew 1.7% in the second quarter.