Canada economy grows more than expected in July

Gross domestic product grows 0.5 per cent
|hrreporter.com|Last Updated: 10/03/2016

OTTAWA (Reuters) — The Canadian economy got off to a stronger-than-expected start in the third quarter, fuelled by a rebound in oil and gas extraction that had been disrupted by wildfires in Alberta earlier this year, data from Statistics Canada showed on Friday.

Gross domestic product grew 0.5 per cent in July, topping analysts' forecasts for a gain of 0.3 per cent. June's growth was unrevised at 0.6 per cent.

The report will likely reinforce expectations that the economy recovered in the third quarter after shrinking in the second quarter due to weak exports and the impact of May's wildfires in the oil-producing province of Alberta.

Activity in the mining, quarrying and oil and gas extraction sector jumped 3.9 per cent in July. The non-conventional oil extraction sector surged 19 per cent as production returned to normal after the wildfire and maintenance shutdowns in April.

The accommodation and food industry also contributed to economic growth with activity rising 1.4 per cent, the fastest pace since July 2012, as Canada saw an influx of tourists.

Manufacturing rose 0.4 per cent, helped by a rise in non-durable goods. But construction tumbled 0.8 per cent, the sector's fourth monthly decline in a row, partly due to a decrease in residential building.

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