UPDATE 1-Canada economy grows for fifth month in Nov, by 0.2 pct

Fri Jan 31, 2014 8:36am EST
 
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* Nov +0.2 pct is as expected; +0.3 pct in Sept/Oct

* Current pace suggests excess capacity being absorbed

* Lead drivers are energy industry, mining, retail

* Manufacturing down after two months of gains

OTTAWA, Jan 31 (Reuters) - The Canadian economy grew for the fifth straight month in November, by 0.2 percent as expected, as a recovery in the oil industry overcame a decline in manufacturing, according to Statistics Canada data released on Friday.

The gains followed increases of 0.3 percent in both September and October, a pace consistent with the Bank of Canada's view that excess capacity in the economy would gradually be absorbed.

Oil and gas extraction rose 2.6 percent, following a 0.7 percent decline in October, and mining and quarrying was up by 1.3 percent. Cold snaps helped boost utilities by 2.1 percent. Manufacturing fell 0.5 percent after two months of increases.

Overall the goods sector gained 0.4 percent while the services side rose by 0.2 percent, with advances in retail, finance and insurance, the public sector, arts and entertainment, and transportation, but declines in wholesale trade and professional services.

Statistics Canada adjusts the data for inflation and seasonal factors.