A rebound by the manufacturing sector boosted Canada's gross domestic product 0.4 percent in April after two months of contraction, Statistics Canada said on Monday. The growth was slightly better than the 0.3 percent median forecast in a Reuters poll and followed declines in March and February of 0.2 percent and 0.3 percent, respectively.
Manufacturing, battered by the US economic slowdown, expanded 1.9 percent in April, not enough to regain the 2.4 percent loss in the previous month. The strength was widespread but motor vehicle production contributed the most with a 7 percent jump versus a 12.8 percent drop in March as producers found alternative parts suppliers to make up for a strike at a major US plant.
"Production by this industry has been quite volatile in recent months, in the context of temporary shutdowns as a result of inventory control and retooling, the above-mentioned strike and shifting demand," Statscan said. Strong gains were also posted by wholesale trade, retail trade and the food services and accommodation sector, Statscan said. Energy and construction sector output fell.