Updated: Tue Oct. 05 2010 11:09:39 AM

The Canadian Press

TORONTO — The provincial treasury is reporting that Ontario's economic growth cooled last spring, but still managed to slightly outpace that of Canada and the United States.

Ontario's real gross domestic product grew 0.6 per cent in the second quarter of 2010, down from 1.5 per cent growth in the previous quarter.

But the province's second-quarter growth was slightly better than Canada's real GDP, which grew 0.5 per cent in the second quarter, and the U.S. which grew 0.4 per cent.

Business investment jumped 5.5 per cent in the April to June period -- after increasing four per cent in the previous quarter -- while investment in machinery and equipment rose 6.9 per cent.

However, investment in residential construction fell 0.5 per cent, the first decline since the first quarter of 2009.

That was largely due to a softer home resale market, which overshadowed spending on renovations and new housing construction.

Consumer spending also rose 0.6 per cent, but more slowly than it did in the first quarter when spending increased 0.8 per cent.

The Ministry of Finance says consumers bought more motor vehicle parts, fuels, food and non-alcoholic beverages, furniture and appliances.