Canada’s economy grew at a steady pace in the fourth quarter, including a 0.4% burst in December in real GDP, its best month of the year, Statistics Canada reported today.

Business investment remained the fastest growing sector, notably engineering projects, StatsCan said.

Firms intend to boost business investment by nearly 5% in 2007, after three straight increases averaging 9%, with the buoyant outlook evident in almost all industries except oil and gas and forestry, which each projected 3% declines.

The largest increases in investment were planned by electric and natural gas utilities, continuing rapid growth last year boosted generating capacity, especially wind-generated power.

Transportation also plans more double-digit growth, much in infrastructure such as urban transit, airports and harbours, while British Columbia, host to the 2010 Olympics, led growth in arts and recreation.

Manufacturers intend to invest more this year, reversing a drop in 2006, as primary metals, chemicals and food led the increase and more than offset cutbacks by the auto industry.