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Loonie ends slightly lower on disappointing Canadian GDP growth

A Canadian dollar or loonie

Jonathan Hayward/THE CANADIAN PRESS

The Canadian dollar closed lower Friday as economic growth figures for the first quarter missed expectations.

The loonie dipped 0.05 of a cent to end at 92.23 cents (U.S.) as Statistics Canada said gross domestic product advanced at an annualized pace of 1.2 per cent. Economists had expected a gain of about 1.8 per cent. It was also down from a 2.7 per cent annualized gain in the final quarter of last year.

On a monthly basis, GDP was up 0.1 per cent in March, in line with expectations.

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In the U.S., other data showed that U.S. consumer spending slipped 0.1 per cent in April, the first decline in a year. Consumer spending had jumped 0.9 per cent in March, the biggest gain since the summer of 2009.

Also, the University of Michigan's widely watched consumer sentiment came in at 81.9 in May, below the 82.5 reading that economists had expected.

Commodity prices were lower across the board as June crude lost 87 cents to $102.71 a barrel.

July copper declined 2 cents to $3.12 a pound, while August gold faded $11.10 to $1,246 an ounce.

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