UPDATE 2-Canada economy grows more than expected, boosting recovery hopes

Mon Dec 23, 2013 10:10am EST
 
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* Economy grows for fourth month in a row

* Goods-producing and services industries both advance

* Canadian dollar boosted by healthy figures

By David Ljunggren

OTTAWA, Dec 23 (Reuters) - The Canadian economy showed unexpected strength in October, growing for the fourth month in a row and boosting market hopes that the country might finally be shaking off the worst of the great recession.

Statistics Canada said on Monday the economy had grown by 0.3 percent from September. Analysts had forecast a 0.2 percent advance after September's 0.3 percent increase.

Although Canada regained most of the jobs it lost since 2008 and 2009, growth has been largely sluggish, prompting the Bank of Canada to make clear it will not raise its key interest rate until it sees signs of a firm recovery.

The economy has posted growth every month this year apart from June.

The output of goods-producing industries grew by 0.4 percent in October on higher manufacturing while service industries output climbed by 0.3 percent as almost all major industrial sectors registered growth.   Continued...