Canada‘s economy grew by 0.2 per cent in May, the third increase in as many months, thanks to a rebound in manufacturing, Statistics Canada data showed on Wednesday.
Analysts in a Reuters poll had predicted an increase of 0.1 per cent in May following a larger-than-expected increase of 0.3 per cent in April. Overall, 13 of the 20 industrial sectors monitored expanded in May, the national statistical agency said.
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Durable manufacturing rose by 2.3 per cent, more than offsetting the 1.7 per cent drop seen in April. Meanwhile, the transportation equipment manufacturing subsector saw a growth of 5.7 per cent after motor vehicle production returned to normal levels some temporary plant shutdowns in April.
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Canada‘s construction industry also saw gains in May, rising 0.9 per cent and recording its fourth jump in five months. Residential construction posted its strongest growth in more than a year, rising by 2.2 per cent as construction of double, row and other multi-unit dwelling expanded.
However, contractions were felt within the mining, quarrying and oil and gas extraction industries, which dropped by of 0.8 per cent following a gain of 5.5 per cent in April, thanks in large part to a decline in extractions from the oil sands.