Canada's economy picks up speed in November

Fri Jan 29, 2010 9:52am EST
 
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OTTAWA (Reuters) - Canada's economy grew for the third straight month in November on strength in oil and gas extraction and wholesale trade, putting it on track for robust fourth-quarter growth, according to Statistics Canada data released on Friday.

Gross domestic product advanced 0.4 percent in the month, beating the market estimate of a 0.2 percent gain. On a year-over-year basis, GDP shrank by 1.7 percent.

Statscan revised its October and September figures for growth upward by one-tenth of a percentage point each to 0.3 percent and 0.5 percent, respectively. It also revised all of its monthly figures back to January 2009.

After disappointing third-quarter annualized growth of just 0.4 percent, the Bank of Canada predicted this month the recovery would gain momentum in the fourth quarter with a 3.3 percent expansion.

In November, goods-producing industries grew 0.6 percent even though the heavyweight manufacturing sector stagnated. The mining and oil and gas extraction sector led the gains with a 1.8 percent jump, followed by construction with a 1.1 percent rise.

The services industry, which had been more resilient during the recession, advanced 0.4 percent in November. Wholesale trade jumped 2.4 percent on strength across all major trade groups, Statscan said.

(Reporting by Louise Egan; Editing by Theodore d'Afflisio)

 
<p>A Canadian Natural Resources pump jack pumps oil out of the ground near Dorothy, Alberta, June 30, 2009. REUTERS/Todd Korol</p>