Canada's gross domestic product grew by 0.2 per cent in October, the second straight month of expansion, Statistics Canada said Wednesday.

Steam rises from a stack at a factory in Hamilton, Ont. (Adrian Wyld/Canadian Press)

As was the case in September, the strength was broad-based, as production increased in most major sectors of the economy.

"This is a classic glass-half-full, glass-half-empty report," BMO economist Doug Porter said. "The half-full part is that the economy has finally managed to churn out back-to-back growth months for the first time since late 2007, and is emerging from recession.

"But the half-empty part is that the recovery remains lacklustre, at best, with GDP still mostly surprising on the low side."

The service industry was buoyed by a 7.2 per cent increase in activity from real estate agents and brokers, which drove the sector to expand by 0.2 per cent.

Tourism-related industries and retail and wholesale trade also saw increases. Within retail, many of the gains were driven by increasing activity at new car dealers. Excluding new car dealers, retail trade was down 0.1 per cent.

Goods-producing industries advanced 0.1 per cent on the strength of utilities. Higher demand for electricity and natural gas led to a 2.4 per cent increase in utilities alone. Construction advanced while mining retreated and manufacturing stood still.

On the downside, manufacturing output was flat, compared with expectations of 1.2 per cent growth, Porter noted, suggesting the economy is showing signs of recovery but is still a long way off from full capacity.