Oil slip drags Canada back into recession

The Canadian economy shrank again in the second quarter, putting the country in recession for the first time since the financial crisis, with a plunge in oil prices spurring companies to chop business investment.

The confirmation of a modest recession will figure heavily into the election campaign as Canadians head to the polls next month, and poses a challenge to Conservative prime minister Stephen Harper, who is seeking a rare fourth consecutive term.

Still, there was a silver lining as growth picked up for the first time in six months in June, underscoring expectations that the recession will be shortlived.