The Canadian economy posted a second consecutive quarter of strong growth, as real gross domestic product increased 0.8% in the second quarter of 2007, easing from the 1% pace set in the first quarter, Statistics Canada reported today.

Economic activity rose 0.2% in June and 0.3% in May after remaining essentially unchanged in April, StatsCan said.

The agency says businesses built inventories in the second three months of the year, gas and oil exploration rebounded and exports rose at a faster pace than in the first quarter, despite the rise in the Canadian dollar against the U.S. greenback.

The economy grew at annual rate of 3.4% in the second quarter.

Consumer spending rose 1.2% in the second quarter, as Canadians bought motor vehicles, household appliances and recreational, sporting and camping equipment.

They were also buying homes.

Businesses, meanwhile, sank their cash into machinery and equipment.