Economic growth best since March: StatsCan

Canada's economy grew by 0.4 per cent in November, the biggest expansion in eight months and ahead of October's 0.2 per cent gain.

It was the second consecutive gain for the country's gross domestic product, Statistics Canada reported Monday. Economists had been expecting a 0.3 per cent gain for the month.

"Prior to today’s surprisingly perky result, it looked like the economy may have struggled to even hit two per cent," BMO economist Doug Porter said. "The Canadian economy looks to have ended 2010 on an upswing after a mid-year lull."

The solid November gain puts GDP for all of Q4 handily on track for the Bank of Canada’s latest call of 2.3 per cent, Porter noted. But he expects several more months of solid gains would be needed to convince the central bank to step out from the sidelines and hike its benchmark interest rate to cool the economy.

Oil and gas extraction led the way with a 2.4 per cent increase in output. Wholesale and retail trade, real estate, and the finance and insurance sector also expanded, while manufacturing declined.

There was also a widespread increase in the home resale market, leading to a 7.6 per cent rise in the output of real-estate agents and brokers, the industry's fourth consecutive monthly increase.

But support activities for mining, oil and gas extraction declined 3.4 per cent due to decreases in rigging and drilling activities.