Canadian Economy Grew 0.2 Percent in August

Canada's gross domestic product advanced for a fourth consecutive month in August, led by retail sales and mining.
Bloomberg 10/31/2007 6:49:31 AM

Gross domestic product advanced 0.2 percent, the same as in July, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News anticipated a 0.1 percent increase, according to the median of 24 estimates.

Rising commodity prices continue to fuel new mining and energy projects, sustaining the buoyant household demand that's led Canada's economic growth in recent years even as a rising currency hurts factory exports. The Bank of Canada has warned that stronger-than-forecast consumer demand may spark inflation.

The Canadian dollar was little changed at 8:49 a.m. in Toronto from $1.0482 late yesterday, when it touched $1.0511, the highest since March 28, 1960.

Retail trade advanced 1.3 percent in August, mining and oil- and-gas extraction grew 0.6 percent, and construction was up 0.5 percent. Manufacturing was unchanged during the month.

Utilities led the month's declines, dropping 0.8 percent.

Canadian Economy Grew 0.2 Percent in August