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MNI DATA IMPACT: Canada August GDP +0.1%, Matching Forecast>

By Greg Quinn and Anahita Alinejad
     OTTAWA (MNI) - Canada's economy resumed modest growth in August 
after stalling in July, as gains in manufacturing were blunted by 
weakness in oil production.
     Gross domestic product grew 0.1% on the month, Statistics 
Canada reported Thursday from Ottawa, matching the MNI economist 
     Factory production climbed for the first time in three months with 
a 0.5% gain led by metals and minerals. Production of transportation 
equipment rose for a fourth straight month, the longest streak since 
2012, on gains in aircraft and autos. 
     Production climbed in 14 of 20 industries, with most making a 
modest contribution to overall growth. Global financial market turmoil 
in August lifted investment services by 2.9% amid the heaviest trading 
on the Toronto stock exchange since 2012, and there were gains in 
professional services and retailing. 
     Energy production fell for the third time in four months, as 
maintenence shutdowns curbed oil output. Output fell 0.7% in August and 
is down 3.9% from a year ago. 
     The economy is slowing with global trade tensions cutting into 
exports and business investment, while household spending is curbed by 
record debt burdens. The central bank on Wednesday kept its benchmark 
lending rate at 1.75% saying the economy's resilience will be 
increasingly tested by a weaker global outlook. 
     The August figure is consistent with expectations that 
third-quarter growth will slow by more than half from the second 
quarter's 3.7% annualized pace. The economy grew 1.3% in August from the 
same month a year ago.
     Statistics Canada today also lowered its estimate for June GDP 
growth to 0.1% from 0.2%. 
--MNI Ottawa Bureau; +1-613-314-9647;

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