Canada’s economy returned to growth as consumers headed back to restaurants and entertainment venues, propelling spending on services.

Gross domestic product rose 0.7 per cent in August, Statistics Canada said in a flash estimate from Ottawa. That’s a reversal from July, which showed a 0.1 per cent contraction, according to the report.

Economists were predicting a 0.2 per cent drop in output for July, after early guidance indicating a weak start to the second half of the year. The agriculture and manufacturing sectors were among the contributors to the decline.

“Today’s GDP report provides a small tonic to the troubling results from a month ago,” Doug Porter, chief economist at Bank of Montreal, said in a report to investors. “The slightly smaller-than-expected setback in July and nice pop in August suggest that the economy managed to grind out some moderate growth in the summer quarter as a whole.”…read more.