OTTAWA Statistics Canada says the economy grew by 0.2 per cent in January after shrinking 0.2 per cent in December.

It says manufacturing was the largest contributor to the increase in real gross domestic product.

Manufacturing output expanded 1.2 per cent in January, following a 1.9 per cent decline in December

Goods production grew 0.4 per cent and mining, quarrying and oil and gas extraction also increased.

The agriculture and forestry sector and construction declined.

The output of service industries was up 0.2 per cent in January, mainly as a result of gains in wholesale trade, arts and entertainment and the public sector.