ottawa oct 28 reuters  the canadian economy grew by a surprise 01 in august buoyed by strong agricultural and retail activity with another 01 increase likely in september and third quarter annualized gpd seen up 16 statistics canada said on friday analysts polled by reuters had forecast gdp would be flat in august the flash estimate for annualized gdp which may change when a final tally is released next month is slightly above the bank of canadas third quarter forecast of 15 growth the central bank increased its policy rate this week by 50basis points to 375 and said it was nearing the peak of its tightening campaign though it was not there yet statscan said a rebound in services in august partially offset a decline in goodsproducing industries the retail trade sector rose 12 bouncing back from july on higher sales at the gas pump at grocery stores and in sporting goods shops the agriculture and forestry sector rose 39 led by increased crop production as better growing conditions in western canada drove higher yields that was offset by a contraction in manufacturing with sector output falling to its lowest level since january construction also declined for the fifth straight month though building activity remains well above prepandemic levels the canadian dollar was trading 03 lower at 13610 to the greenback or 7348 us cents reporting by julie gordon in ottawa additional reporting by dale smith and angus macswan