Ottawa, Ontario, December 23, 2005—The Canadian economy grew 0.2 percent in October from September due in large part to an autos-driven rebound in the manufacturing sector, Statistics Canada said on Friday.
The increase was slightly less than the 0.3 percent rise predicted by market analysts. September's gross domestic product had been unchanged from August.
"Strength in the goods producing sector was concentrated in manufacturing, notably the production of motor vehicles," Statscan said in its daily bulletin.
The manufacturing sector, hit hard by the rising Canadian dollar, higher energy prices and increasing foreign competition, has shed around 100,000 jobs in the last year.
Overall industrial production expanded by 0.4 percent on the strength of a 1.0 percent increase in manufacturing, where production grew in 14 of the 21 major groups.
Production of autos, light motor vehicles and heavy trucks rose by 9.4 percent, in part because of a boost in output of 2006 models in some plants.
The healthier figures for auto manufacturing spilled over into retail, which was up 0.9 percent from September, and wholesale trade, which increased by 1.0 percent.
The overall increase in manufacturing was offset by a 0.9 percent drop in the mining, oil and gas sector. The energy sector slipped by 0.3 percent, hit by lower oil and gas exploration and warm weather which cut electricity generation and distribution of natural gas.
