October 31, 2018 / 12:50 PM / a year ago

UPDATE 1-Canada economy grows for seventh consecutive month in August

(Adds details of release, background)

OTTAWA, Oct 31 (Reuters) - Canada’s economy grew for the seventh month in a row in August, its longest stretch of expansion for more than a year, in part as a result of strength in oil and gas extraction, Statistics Canada said on Wednesday.

The 0.1 percent increase in GDP contrasted with analysts’ expectations of no change from July. The last such long unbroken streak of growth was the nine-month run from November 2016 to July 2017.

If GDP is flat in September, annualized third quarter growth should come in at about 1.8 percent, matching the latest forecast from the Bank of Canada. The central bank reiterated on Tuesday that more interest rates increases would be needed.

The oil and gas extraction subsector increased by 1.9 percent in August as total crude output in the oil-rich province of Alberta hit a record high. The finance and insurance sector posted a 1.0 percent gain.

The manufacturing sector contracted by 0.6 percent, in part because of a 1.9 percent drop in motor vehicle assembly after atypical shutdowns at some auto plants.

Reporting by David Ljunggren; Editing by Steve Orlofsky

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