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Economic growth in Canada slowed in January after a sharp jump in December as strength in manufacturing and financial services was partially offset by a decline in natural gas extraction, according to Statistics Canada data released on Friday.
Gross domestic product inched up 0.1 percent in the month, in line with market expectations. The modest performance followed an even bigger growth spurt in December than had been previously reported, with Statscan revising its growth estimate to 0.5 percent from 0.4 percent.
Manufacturing, still a sore spot in the economy after taking a big hit during the U.S. recession, increased for the fifth straight month with a 0.7-percent gain but was still below mid-2008 levels.
Finance and insurance, utilities, and wholesale trade, some tourism-related industries and the public sector also reported gains in January.
But a decline in natural gas extraction caused the oil and gas extraction industry to shrink by 0.9 percent. Retail trade was unchanged while housing construction declined.
Quarterly GDP growth, as calculated by Statscan last month, slowed to an annualized 1.8 percent in the fourth quarter from 4.2 percent growth in the third.