Canadian economic growth remained essentially unchanged in October after contracting 0.4% in September, Statistics Canada said today.

Separately, StatsCan reported retail sales fell in October for the second month in a row, as sales in the automotive sector continued to decline and back-to-school spending on clothing wrapped up.

In its report on gross domestic product for October, the government agency said manufacturing and the service sector stood still, although energy and utilities showed good growth.

The energy sector grew by 0.9% in October, led by production and distribution of natural gas, a rebound in electricity and a jump in refinery output.

Oil production and oil and gas exploration declined.

Manufacturing was down for the ninth time this year, falling 0.8% as auto and steel makers cut production.

Of the 21 major manufacturing groups, 12 showed decreases.

Meanwhile, StatsCan reported that total retail sales fell 0.7% to an estimated $32.6 billion in October.

October’s decline, combined with the decrease in September, nearly offset the gains made in July and August, resulting in a relatively flat trend for retail sales. Prior to this period, retail sales have been generally rising at a rapid clip since 2004.

Unlike September’s decline, which was concentrated in the automotive sector, the weakness in October was more widespread with only three of the eight retail sectors registering sales increases.

Retail sales excluding new, used and recreational vehicles and parts dealers also decreased by 0.7%.

Sales in the automotive sector fell by 1.2% after dropping 5.3% in September, mainly due to a drop in gasoline prices.

The clothing and accessories stores sector saw their sales fall by 4% in October after a spending spree that drove sales up 6.6% in September.

The general merchandise stores sector, which includes department stores that sell clothing, saw their sales follow the same pattern. Sales fell by 1.1% in October in this sector after an increase of 1.8% in September.

Sales fell for the second month in a row in the building and outdoor home supplies stores sector (-0.8%), while retail spending in the furniture, home furnishings and electronics stores sector fell by 0.3% in October. This was only the third monthly sales decline for this sector in 2006.

Partially offsetting these declines were sales gains in the food and beverage stores (+0.4%), pharmacies and personal care stores (+0.1%) and miscellaneous retailers (+0.9%) sectors. For the latter, strong sales gains among miscellaneous stores retailers (+2.6%) more than offset a sales decline in sporting goods, hobby, music and book stores (-0.7%).