Economic activity increased 0.2% in October after growing 0.1% in September, Statistics Canada reported today.

Increases in manufacturing and wholesale trade propelled the growth, while a decline in mining dampened it, StatsCan said.

Growth was also recorded in the financial sector and retail trade, while agriculture and forestry declined.

Wholesale trade rose 1.5% in October, its sixth straight rise, on the strength of widespread gains.

The wholesaling of building materials, machinery and electronic equipment, automotive products, and personal and household goods all posted significant increases, while declines in grains, farm and petroleum products slowed wholesale sales.

Manufacturing output increased 0.8% in October, after declining for two months.

Manufacturing growth came mainly from higher production of durable goods, helped in part by increased foreign demand – that despite a loonie that appreciated 5.1% in October and 3.2% in September against its U.S. counterpart.

The production of durable goods (up 1.5%) significantly outpaced the decline of non-durable goods (down 0.3%). Of the 21 major manufacturing groups, 11 increased, accounting for 74% of total manufacturing value added.

Manufacturing of motor vehicles, machinery, and primary and fabricated metal products propelled the increase in the face of declines in refineries, sawmills, and paper products manufacturing.

The volume of manufacturing inventories declined for a third straight month.

The energy sector slipped 0.9% in October. Natural gas and petroleum extraction contracted 1.8%.

Electricity production edged forward 0.6% in October, while natural gas distribution advanced at a rapid pace (up 3.7%).

The output of the mining sector excluding oil and gas fell 2.1% in October. Both metal ore (down 1.5%) and non-metallic mineral mines (down 2.9%) lost ground. However, mining support activities, including oil-and-gas exploration, leaped 3.5%. In particular, the amount of contract drilling was up.

Industrial production (the output of mines, utilities and factories) increased 0.1% in October. The strength in manufacturing and utilities was partially offset by the decline in mining. In the United States, industrial production decreased 0.7% in October, with all three sectors losing ground.

The value added by retail trade advanced 0.3% in October on the strength of a surge in activity by new car dealers, gasoline stations, building and outdoor home supplies stores, and pharmacies. Clothing, convenience, and general merchandise stores, including department stores, retreated.

Construction edged up 0.1% in October. Increases in non-residential building construction (up 0.2%) and engineering and repair work (0.4%) slightly outpaced the drop in residential construction (down 0.6%).

Despite a general downward trend in recent months, the home resale market registered a slight increase for October. As a result, the real-estate agents and brokers industry posted a gain of 0.6% for the month.

Activities in the finance and insurance sector increased 0.5%. Strong trading on the stock markets, combined with healthy sales of mutual funds, fuelled the sector. There was, however, a decline in new issues of securities.

The forestry sector, down 0.5%, continued to be affected by a major labour dispute that ended toward the end of October.