From: abc@123.cl   
      
   Canada's economy picks up speed in November   
      
      
   January 29, 2010   
      
   Canada's economy grew more than expected in November, Statistics Canada   
   reported Friday, led by the goods and services sectors.   
      
      
   OTTAWA — Canada's economy grew more than expected in November as the   
   wholesale, oil and mining sectors helped accelerate the pace of   
   recovery.   
      
   Gross domestic product rose 0.4 per cent during the month, the third   
   consecutive monthly increase, Statistics Canada reported Friday. It   
   also revised GDP for October to 0.3 per cent from 0.2 per cent and   
   September's growth to 0.5 per cent from 0.4 per cent.   
      
   "As was the case in September and October, most major industrial   
   sectors increased their production," it said.   
      
   "Mining and oil and gas extraction, and wholesale trade accounted for   
   about 60 per cent of the overall growth," the agency said.   
      
   Economists had expected growth of between 0.1 and 0.3 per cent in   
   November.   
      
   "The Canadian economy does indeed appear to be gathering momentum,   
   despite some recent disappointments on the employment front," said   
   Douglas Porter, deputy chief economist at BMO Capital Markets.   
      
   "While much of the growth in November was concentrated in a few   
   sectors, most industries were on the plus-side as the recovery broadens   
   and puts down firmer roots."   
      
   Canada recorded a 0.1 per cent gain in the third quarter, ending a   
   three-quarter recession that began in late 2008. Fourth-quarter GDP   
   results are to be reported March 1.   
      
   Millan Mulraine, economics strategist at TD Securities, said Friday's   
   data "suggest a significant pickup in the pace of Canadian GDP in the   
   last quarter of the year as the Canadian economy shifted up a gear or   
   two."   
      
   "In the coming months, the Canadian economic recovery should remain   
   intact as the significant monetary and fiscal policy stimulus   
   administered to the Canadian economy gathers traction, though the   
   recovery is likely to remain both slow and fragile."   
      
   Statistics Canada said goods-producing industries were up 0.6 per cent   
   in November, while the services sector increased 0.4 per cent. The   
   mining sector gained 1.8 per cent — led mainly by oil and gas   
   extraction. Wholesale activities rose 2.4 per cent, with the biggest   
   increases recorded in food products, motor vehicles and building   
   supplies.   
      
   Meanwhile, a report Friday showed the U.S. economy grew at a bigger-   
   than-expected 5.7 per cent in the fourth quarter — the fastest pace   
   since 2003. That followed a 2.2 per cent annual rate of growth in the   
   third quarter.   
      
   On Tuesday, the International Monetary Fund raised its 2010 growth   
   outlook for Canada to 2.6 per cent from its previous estimate of 2.1   
   per cent.   
      
   The IMF projection is close to the Bank of Canada's forecasts of 2.9   
   per cent expansion this year. The IMF's outlook for Canada in 2011 is   
   unchanged at 3.6 per cent, which is in line with the central bank's 3.5   
   per cent outlook.   
      
   "Canada was doing better than we were earlier led to believe, and that   
   has GDP taking aim at a healthy four per cent pace for the fourth   
   quarter of 2009," said Avery Shenfeld, chief economist at CIBC World   
   Markets Inc.   
      
   "Upward revisions to September and October growth rates, alongside a   
   surprising 0.4 per cent rise in November GDP, didn't quite put Canada   
   on par with its American neighbours, but finally put production into   
   better line with job gains over the past five months."   
      
   The IMF also upgraded its U.S. outlook for 2010 to 2.7 per cent, but   
   downgraded the forecast in 2011 to 2.4 per cent.   
      
   "This is one of the most convincing signs that the recovery is for real   
   that we have seen so far, and neatly dovetails with the robust U.S. GDP   
   result," said BMO's Porter.   
      
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