The Canadian economy got off to a stronger-than-expected start in the third quarter, fueled 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% in July, topping analysts’ forecasts for a gain of 0.3%. June’s growth was unrevised at 0.6%
The StatsCan 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% in July. The non-conventional oil extraction sector surged 19% 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%, the fastest pace since July 2012, as Canada saw an influx of tourists.
The agency also said that, on the one hand, manufacturing rose 0.4% helped by a rise in non-durable goods. But construction tumbled 0.8%, the sector’s fourth monthly decline in a row, partly due to a decrease in residential building.
