Annualized, quarterly GDP grew at 1.3% in the July to September period. The resurgence in the economy came as production of goods rebounded, inventories increased and business investment grew, Statistics Canada said.

Economists' consensus expectation for the third quarter was an annualized quarterly increase of 1.1%.

The mining sector led the charge in resurgent production, notably in support activities for oil and gas extraction and construction, Statistics Canada said. The manufacturing sector also saw its production increase, but forestry declined. Production in the services sector was up, with notable gains in the public sector, retail and wholesale trade.

Exports of goods and services fell 1.4% for a fifth straight quarter and export volumes were down 5.8% compared to the previous three-month period. Among the notable export declines were agricultural and fish products, energy and forestry products. Automotive product shipments abroad also fell, marking a fourth straight drop.

Imports also declined, falling 1.6% compared to the last quarter. They were 3.2% lower than their peak in the fourth quarter of 2007.

Housing investment remained unchanged in the quarter after two straight quarterly declines. The value of new housing construction edged up, as did renovation. Resale activity fell 1.5% in the quarter.

Corporate profit grew 5.7% in the third quarter, on top of a robust 8.6% gain in the second quarter.

Business investment in plant and equipment expanded 0.2% in the third quarter and inventories were up by about $2 billion. Statistics Canada said nonfarm businesses stock increased as did retail inventories, particularly motor vehicles.

Consumer spending and household borrowing softened in the quarter, but personal income growth continue to advance, rising 0.7%. Employment was down 0.1% in the quarter. Personal outlays outpaced income growth as price increases contributed to a 1.2% increase in the nominal value of personal purchases of consumer goods. However, Statistics Canada noted that the volume of personal purchases of consumer goods was down 0.2% in the quarter.

In the month of September, real GDP grew 0.1% with the growth in the output of service industries outweighing a decline in the production of goods.

Wholesaling activity climbed 1.6% in September while the energy sector fell 0.9% on a 1.6% drop in oil and gas extraction.

Manufacturing advanced 0.3% in the month, while the finance and insurance industry edged up 0.1% on record trading volumes. Construction activity fell 0.4%.

By Sean McKibbon, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it

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