OTTAWA, July 28 (Reuters) - Canada's economy accelerated in May on growth in the energy, manufacturing and retail trade sectors, Statistics Canada said on Friday, in a report that pointed to strong momentum in the economy in the second quarter.
The 0.6 percent gain exceeded economists' forecasts for 0.2 percent, while April was unrevised at 0.2 percent.
The report could bolster expectations for another interest rate hike from the Bank of Canada, which earlier this month raised rates for the first time in nearly seven years.
The country's goods-producing industries led the growth, rising 1.6 percent. Oil and gas extraction surged 7.6 percent as activity at a facility in Alberta recovered after a fire and explosion in March that caused production difficulties, the statistics agency said.
The mining, oil and gas extraction sector accounted for nearly 0.4 percentage point of May's overall economic growth.
Manufacturing activity rose 1.1 percent, driven by makers of petroleum and coal products, as well as motor vehicles and parts. Higher vehicle sales at new and used car dealers helped the retail sector grow by 0.9 percent.
But the recent slowdown in Toronto home sales was starting to weigh on economic growth, with activity at offices of real estate agents and brokers tumbling 6.3 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic - Canada monthly GDP, exports to the U.S.
http://link.reuters.com/jev87s Graphic - Canada economic snapshot
http://tmsnrt.rs/2e8hNWV
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>