Canadian economy bounces back in July

The economy of Canada recovered in July from temporary disruptions the previous month, expanding by 0.6 percent, the highest monthly rate in two years, following the 0.5 percent drop in June, Statistics Canada (Statscan) said Monday. Production of goods rose 1.2 percent in July, mainly in construction, manufacturing, and mining and energy extraction, while services output increased 0.3 percent, led by wholesale and retail trade. The temporary factors in June were flooding in the province of Alberta and a construction labor strike in Quebec. In a second report, Statscan said Canadian producer inflation increased by 0.2 percent in August, mostly because of higher prices for primary-metal products. Raw-materials prices climbed by a bigger-than-expected 0.9 percent in the month, mainly due to crude oil and metals.