Canada economy in July recovers from June's decline
OTTAWA (Reuters) - The Canadian economy recovered in July from temporary disruptions the month before, growing by 0.6 percent, the highest in two years, after a 0.5 percent fall in June, Statistics Canada said on Monday.
Flooding in Alberta and a construction workers' strike in Quebec had cut June's output. In July, construction increased by 1.9 percent after a 2.1 percent fall the month before. The Bank of Canada had said it would look through June's troubles.
Despite July's positive number, gross domestic product for the month was only 1.4 percent higher than in July 2012 and well below the central bank's estimate of the potential growth in output.
Manufacturing and mining and oil and gas extraction also rose, helping goods production climb by 1.2 percent. Utilities and the farm and forestry sector fell. Services rose by 0.3 percent, with gains in wholesale, retail, finance and insurance, and arts and entertainment.
The median forecast of analysts in a Reuters survey was for a 0.5 percent rise in July. The Statistics Canada data is adjusted for inflation and for seasonal factors.
(Reporting by Randall Palmer and Alex Paterson; Editing by Jeffrey Benkoe)
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