(Adds details from report)
OTTAWA, Dec 10 (Reuters) - Canada's industrial capacity use rose in the third quarter after two consecutive periods of decline, boosted by a pick-up in the oil and gas extraction sector, data from Statistics Canada showed on Thursday.
Capacity utilization was 82.0 percent, topping economists' forecasts for an increase to 81.9 percent. The second quarter was revised slightly higher to 81.4 percent from an initially reported 81.3 percent.
Oil and gas extraction was mainly responsible for the growth in the utilization rate, the agency said, with the sector rising to 86.5 percent. The industry saw a higher volume of non-conventional oil extraction and gas extraction.
Canada has been hurt by the drop in the price of oil, a key export for the country. Although the economy emerged from a mild recession in the third quarter, the recent renewed downturn in oil has raised concerns of weaker-than-expected growth in the final quarter of the year.
Capacity use in the manufacturing sector rose to 83.1 percent in the third quarter. Utilization increased in 14 of the 21 major manufacturing groups, accounting for about 65 percent of the gross domestic product of the sector.
Reporting by Leah Schnurr; Editing by Jeffrey Benkoe