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CORRECTED-UPDATE 1-Canadian Q3 GDP slows to annualized 1.3% after strong second quarter gain

(Corrects Bank of Canada forecast)

OTTAWA, Nov 29 (Reuters) - The Canadian economy expanded at an annualized rate of 1.3% in the third quarter on higher business investment and increased household spending, official data showed on Friday.

Friday’s data matched a forecast by the Bank of Canada in October but was slightly higher than the 1.2% predicted by analysts in a Reuters poll.

Gross domestic product in September grew 0.1%, Statscan said, on gains in both the services and goods producing sectors, matching analysts expectations as well as the 0.1% increase seen in August.

The Bank of Canada has held rates steady since October 2018 even as many of its counterparts including the U.S. Federal Reserve have eased.

Canada’s central bank, which has warned the country’s export-dependent economy is not immune from global trade tensions, is set to release its next interest rate decision on Dec. 4.

Money markets are expecting the central bank to hold rates steady at 1.75% again in December, while a Reuters poll released on Tuesday found a slim majority of more than 30 economists now expect the Bank of Canada to hold rates through to the end of next year.

Statistics Canada said Friday that business investment grew 2.6% in the third quarter, the fastest pace seen since the fourth quarter of 2017, while household spending accelerated to 0.4%. Housing investment rose 3.2%, the highest gain seen since the first quarter of 2012.

Reporting by Kelsey Johnson Editing by Chizu Nomiyama