Canada’s real gross domestic product rose 0.3% in the first quarter following increases of 0.4% in each of the previous two quarters, Statistics Canada reported. Expressed at an annualized rate, real GDP rose 1.3% in the first quarter; in comparison, real GDP in the US rose at an annualized rate of 2.2% in the first quarter.

Growth was moderated by a deceleration in household spending, lower exports of non-energy products and a 1.9% decline in housing investment.

Household spending grew 0.3%, the slowest pace since the first quarter of 2015. Growth was driven by increased outlays on services, up 0.5%. Household spending on goods was unchanged, following 11 consecutive quarterly increases.

Separately, The Conference Board of Canada’s Provincial Outlook: Spring 2018 report released this week expects slower economic growth in all provinces this year as a number of factors — such as uncertainty over NAFTA, stalled oil pipeline projects, cooling housing markets and weak business investment — weigh on the provincial economies.

British Columbia and Prince Edward Island will have the fastest-growing provincial economies in 2018, with real GDP growth of 2.6%. British Columbia will continue to benefit from strength in the services sector and solid growth in exports as duties placed on softwood lumber have not been as damaging to the industry as anticipated. Growth in Prince Edward Island’s economy will be supported by strong population gains due to immigration, record-breaking tourism numbers and elevated demand for its products.

Ontario and Quebec’s economies will advance at a more moderate pace of 2.2% as both provinces face weaker growth for household consumption.

Alberta bounced back from the recession, growing by 4.9% in 2017, but economic growth is expected to be weaker this year, at 1.9%. There are upside risks to the forecast as the price of West Texas Intermediate is averaging around US$70 per barrel and could continue to increase.