Canada's GDP rises 0.3% in August

Canada's economy rose 0.3 per cent in August following a 0.1 per cent drop in July, helped by oil and gas extraction, wholesale trade and manufacturing., CBC 10/31/2010 8:11:24 AM

The federal agency also said increases were recorded in the finance and insurance sector, construction and retail trade. Utilities and forestry decreased, while public-sector output was unchanged.

Mining and oil and gas extraction rose 0.5 per cent, wholesale trade rose 1.1 per cent and manufacturing grew 0.5 per cent.

The finance and insurance sector advanced 0.6 per cent, construction was up 0.4 per cent and retail trade edged up 0.1 per cent in August.

Last week, the Bank of Canada said it now believes Canada's economy will likely grow about three per cent this year instead of the 3.5 per cent it had projected in July, and much of this growth took place in the first part of the year.

For next year, the bank predicts growth of 2.3 per cent, six-10ths of a point lower than previously projected, and it forecasts 2012 growth of 2.6 per cent.