GDP grows on the back of energy

OTTAWA — Canadians may be worried about the blowback from a money meltdown south of the border, but it seems the economy in Canada is still holding up.

According to Stats Canada, real gross domestic product (GDP) increased 0.7 percent in July, more than double the 0.2 percent growth most analysts were expecting.

Higher energy prices accounted for almost half the increase, but manufacturing and wholesaling industries also contributed significantly to the advance.

Output of the energy sector increased 3.1 percent, as natural gas extraction was up sharply.

Manufacturing, meanwhile, jumped 1.3 percent, with 17 of the 21 major sectors posting a gain. Primary and fabricated metals products, and machinery were particularly strong during the month, while pharmaceuticals also posted a robust gain.

Wholesaling activity advanced 1.9 percent. The most notable gain in this segment was in the wholesaling of automotive products.

Construction Unchanged:

After two consecutive monthly increases, construction didn’t budge in July. The increase in repair and engineering works was offset by the declines in both residential and non-residential building construction.

A substantial decline in construction of single-family homes more than offset the increases in the other categories of residential construction, says Statscan.