Energy sector drives economy 0.3% higher in August

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Globe and Mail Update
Published Monday, Oct. 31, 2011 8:44AM EDT
Last updated Monday, Oct. 31, 2011 8:48AM EDT

The Canadian economy grew a better-than-expected 0.3 per cent in August, led by activity in the energy sector, more evidence the country did not slide into recession in the third quarter.

The gross domestic product expanded after growth of 0.4 per cent in July and 0.2 per cent in June, Statistics Canada said Monday. Excluding energy, real GDP was unchanged.

The report comes after a string of economists have downgraded their Canadian growth forecast in recent months. Last week, the Bank of Canada slashed its own projection for this year and next, saying the outlook has “weakened” due to a softer global economy.

Growth in August also came from the finance and insurance sector, retail trade and construction.

On the flip side, wholesale trade, manufacturing, utilities, and some tourism-related industries declined.

Activity in the public sector – which includes public administration, education and health care -- was unchanged.