The agency says inflation-adjusted GDP slipped 0.9 for the April to June quarter as a whole, but that was an improvement over the 1.6 per cent drop in gross domestic product recorded in the first quarter of 2009.

Consumer spending rose in the second quarter as more people bought autos.

Housing sales also rebounded, boosting the real estate market.

Exports of goods and services and business investment in machinery and equipment were both down, but not as sharply as in the first three months of the year.

Personal income edged up, after falling 0.9 per cent in the first quarter, as Employment Insurance benefits increased by 23 per cent.