The pace of economic activity was largely unchanged in the third quarter after a pronounced slowdown in the second quarter, Statistics Canada reported today.

Real gross domestic product advanced 0.4% compared to 0.5% and 0.9% growth in the second and first quarters respectively, the governement agency said.

StatsCan said that a turnaround in exports, a pickup in non-residential building investment and a slight acceleration in personal expenditure were offset in the third quarter by a further decline in business investment in residential construction and notably weaker government current expenditures and inventory accumulation.

Economic production fell 0.3% in September after advancing in 0.2% in July and August 0.3%.

Goods production declined by 1% in September while activity in service industries was essentially unchanged.

Third-quarter growth was driven by continued strength in business investment in non-residential structures and equipment, particularly a gain in engineering construction, along with a rebound in exports.