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Canadian economy grew 0.4% in October: Statistics Canada

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Statistics Canada says real gross domestic product grew 0.4 per cent in October, its sixth consecutive month of growth.

The increase followed growth of 0.8 per cent in September.

Economists had expected an increase of 0.3 per cent for October, according to financial data firm Refinitiv.

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Both goods-producing and service-producing sectors were up overall in October, but the Statistics Canada report notes declines in manufacturing and food services.

The 0.8 per cent decline in manufacturing followed five months of growth and was largely a result of lower inventory, Statistics Canada says.

The 3.9 per cent drop in accommodation and food services, marked the second straight month of declines in the sector as the change in weather effectively ended the outdoor dining season.

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Activity in the offices of real estate agents and brokers decreased 1.9 per cent in October, the agency says, following five months of sharp increases.

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Statistics Canada says the areas in and around Toronto and Vancouver contributed the most to the decline in housing resale activity.

Despite the growth, the Canadian economy remains about four per cent below where it was prior to the COVID-19 pandemic.

Statistics Canada says its preliminary estimate for November indicates growth of 0.4 per cent for the month.

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