The Canadian economy grew at an annualized rate of 3.2% in the second quarter of the year, compared to 2.1% in the last quarter, Statistics Canada said today.

The government agency said widespread growth in the demand for goods and services led to a 0.8% rise in real gross domestic product in the second quarter following a 0.5% increase in the first.

The economy advanced by 0.2 per cent in June, 0.3% in May, and 0.4% in April.

Continued strength in personal expenditures and a rebound in housing contributed to the strong second quarter performance, StatsCan said.

Personal expenditures grew 0.6% following a stellar performance in the first quarter. Strong demand for durable and semi-durable goods continued to drive output up in the retail trade and wholesale trade sectors.

StatsCan said some of the recent growth in personal expenditures has been spurred on by the growth in labour income. Labour income grew 1.5%, outpacing the growth of consumption for the first time since the fourth quarter of 2003.