Canada Economy Set for Contraction in Second Quarter

An employee assembles a rear bumper an auto parts manufacturing facility in Guelph, Ontario.

Photographer: Cole Burston/Bloomberg

The Canadian economy is on track for a modest decline this quarter, yet isn’t deteriorating as fast as some economists feared.

Advance data showed industry-based gross domestic product shrank 0.1% in May, matching April’s 0.1% decline, Statistics Canada said Friday.