OTTAWA – Strength in manufacturing helped boost economic growth in November as the sector posted its largest monthly increase since February 2014.
Statistics Canada said Wednesday real gross domestic product increased 0.4 per cent in November following a flat reading for October.
The result matched the expectations of economists polled by Thomson Reuters.
TD Bank senior economist Brian DePratto said equally important to the strength of growth was its breadth.
Of the 20 industrial sectors tracked, 17 posted increases.
“The Canadian economy fired on all cylinders in November: production resumptions led the way, but nearly all major sectors reported gains on the month, an encouraging sign,” DePratto wrote in a report.
The Bank of Canada raised its key interest rate target earlier this month on the back of a string of unexpectedly solid economic data. It was the third rate increase since last summer.
“Looking through monthly volatility, though, the GDP numbers add to the evidence that the Canadian economy as a whole continues to grow at a modestly ‘above-potential’ pace even as it increasingly looks to be operating at or beyond its long-run capacity,” Royal Bank senior economist Nathan Janzen wrote.
The growth in November came as goods-producing industries rose 0.8 per cent boosted by the manufacturing sector and mining, quarrying and oil and gas extraction.
The manufacturing sector gained 1.8 per cent in November as non-durable manufacturing rose 1.1 per cent while durable manufacturing increased 2.5 per cent.
Mining, quarrying, and oil and gas extraction increased 0.5 per cent.
Meanwhile, services-producing industries climbed 0.3 per cent, led by the real estate and rental and leasing, wholesale and retail trade sectors.
Real estate and rental and leasing rose 0.4 per cent in November while retail trade gained 0.6 per cent and wholesale trade rose 0.5 per cent.