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The Canadian economy grew for a second straight month in July after shrinking during the second quarter as a whole, with manufacturing posting its first gain in four months, Statistics Canada said on Friday.
The 0.3 percent growth was exactly as predicted in a Reuters survey of economists and follows a 0.2 percent rise in June.
The positive hand-off in June along with July's growth suggests Canada may be able to avoid the technical definition of recession -- two successive quarters of declines. Bank of Canada Governor Mark Carney said last weekend that data for the third quarter so far was positive.
A rebound in the auto sector, which had been hit by the Japanese earthquake and tsunami, accounted for half of the 1.4 percent rise in manufacturing. Transportation and warehousing also rose by 1.8 percent, largely because of the resolution in late June of a Canada Post labor dispute.
Wholesale, utilities, the public sector and mining output also grew, while retail, oil and gas, construction, finance and insurance declined. All figures are seasonally adjusted.