Canada’s economy grew by 0.5% in August, Statistics Canada said today. August’s growth was an improvement from the 0.2% rate seen in July.

The July growth was revised upwards from 0.1%.

“Stronger domestic demand, a build-up of manufacturing inventories, and the end of extended planned shutdowns were behind this growth,” StatsCan said.

On an annual basis, production was up by 4.6% for all industries, by 5.3% for goods-producing industries, and by 4.3% for services-producing industries.

Construction, forestry and some tourism-related industries were the main areas of weakness for the month.

Economists had been projecting Canada’s gross domestic product would grow between 0.3% an 0.4% for August.

Output in the Canadian manufacturing sector increased 1.0% in August after a 0.4% increase in July. Statistics Canada said growth was largely concentrated in the fabrication of durable goods: transportation equipment, machinery, and fabricated metal products.