An increase in output from Canada’s manufacturing sector helped the economy grow by 0.2% in October, following a September of no growth, Statistics Canada reported today.

Between October 2005 and the same month last year, the economy grew by 3.1%, the government agency said.

The strength in manufacturing was concentrated in the auto sector as vehicle production rose by 9.4%.

“These gains were attributable to a boost in production of 2006 models in some plants, coupled with the fact that Canada is currently home to the assembly of several popular makes of cars and light trucks in North America,” the government agency said.

While vehicle production grew, output from the mining, oil and gas sector, and the utilities sector decreased.

A rise in vehicle sales also boosted the retail trade sector, which grew by 0.9% in October.

Construction activity rose by 0.5% on strength in non-residential building construction.