Statistics Canada says the country’s economy expanded at an annualized rate of 1.7 per cent in the first quarter.

Household spending on services increased by 1.1 per cent while spending on goods edged up by 0.3 per cent.

It comes as the agency reported that real gross domestic product was essentially unchanged in March after a 0.2 per cent increase in February.

Construction rose 1.1 per cent, which the agency said was its largest monthly increase in more than two years,

Almost all types of construction activity increased, with repair construction being the only exception.

Residential building construction was up 1.4 per cent, largely driven by increased activity in construction of new single-detached homes.

Meanwhile, the manufacturing sector was the largest detractor to growth in March, according to StatCan.

Officials said the sector contracted for the second consecutive month, down by 0.8 per cent in March.