(Adds details from report)
OTTAWA, Dec 1 (Reuters) - Canada pulled out of recession in
the third quarter as an acceleration in exports and increased
spending in the consumer and housing sectors revived growth,
data from Statistics Canada showed on Tuesday.
The report came the day before a Bank of Canada interest
rate decision. After cutting rates twice this year to offset the
impact of cheaper oil prices on the economy, the central bank is
widely expected to hold rates at 0.50 percent on Wednesday.
Gross domestic product increased at an annualized 2.3
percent rate last quarter, a tad shy of expectations for a 2.4
percent pace. It was also slightly below the Bank of Canada's
forecast of 2.5 percent growth for the quarter.
Economic activity in September declined by a
worse-than-expected 0.5 percent, providing softer momentum
heading into the final quarter of the year.
Exports, a sector that is key to the central bank's outlook,
climbed by an annualized 9.4 percent in the quarter, helped by
an increase in shipments of goods including motor vehicles and
consumer items. Exports of crude oil and crude bitumen also
rose.
An increase in investment in residential construction and
consumer consumption also contributed to economic growth,
suggesting cheaper borrowing costs were having an effect.
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Graphic - Canada monthly GDP, exports to the U.S.: http://link.reuters.com/jev87s
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
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