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Canada’s economy grew at an annualized rate of 3.7 per cent during the first quarter as consumer spending more than made up for a slide in exports.

“Consumers were the star of the show,” said Brian DePratto, senior economist with TD Economics.

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Exports were a weak spot during the quarter, slipping at an annualized rate of 1.3 per cent. But domestic demand grew at an annualized rate of 4.7 per cent. A big push came from household spending on goods, up 4.3 per cent.

Indeed, Canadians spent so much they triggered a drop in the personal savings rate to 4.3 per cent, down from 5.3 per cent in the prior quarter. “It seemed that Canadians still can’t shake their debt habit, as nominal household expenditures outpaced disposable income growth,” DePratto said.

The first quarter result was a slight disappointment relative to a consensus forecast that Canada’s first quarter gross domestic product would top 4 per cent. The Q1 growth was also just shy of the 3.8 per cent gain that had been forecast by the Bank of Canada.