Statistics Canada is reporting the Canadian economy recorded its strongest performance in eight months in November, growing 0.4% on a month-over-month basis. This gain exceeded market expectations, and was the result of a strong performance by the services sector, as well as oil and gas drilling. Analysts said the rise in November output bodes well for a final fourth-quarter GDP annualized growth reading of 2.3%, which would match the Bank of Canada’s forecast. Other sectors did not do as well: manufacturing was on the decline, and construction also decreased. The Canadian dollar gained modestly after the data release, while yields on Canadian bonds increased slightly. “It’s a good number and going forward December’s GDP is expected to be supported by a significant recovery in manufacturing, which tends to suggest that Canada will exit 2010 while not necessarily like a lion, but some sort of domesticated feline nonetheless,” said Stewart Hall, economist at HSBC Securities Canada. TD economists believe this resurgence in the services sector may be short-lived: consumer demands appear to be cooling, and more stringent mortgage insurance rules may dampen the housing market and slow growth in the service sector and construction output through 2011.