TORONTO - The Toronto stock market tumbled Friday as positive economic growth data failed to inspire buying while commodity stocks took a particular hit from a rising U.S. dollar, adding up to the markets' worst monthly loss since February 2009.

The S&P/TSX composite index fell 179.89 points to 11,094.31.

The Toronto market's main index fell about 5.5 per cent during January and the Dow Jones industrials average was down about 3.5 per cent.

A generally positive fourth-quarter earnings season has failed to lift indexes while investors have been worried about plans by President Barack Obama to restrict trading by big financial institutions. The Toronto market, in particular, has been impacted by Chinese moves to curb lending by raising banks' reserve requirements, which touched off concerns about demand.

Statistics Canada reported that the economy grew by 0.4 per cent in November, beating the expectations of economists who had forecast a 0.3 per cent increase. November's gain also followed an upwardly revised 0.3 per cent gain in October.

The Canadian dollar moved down 0.27 of a cent to 93.52 cents US.

And in the U.S., fourth-quarter gross domestic product grew at a 5.7 per cent annual rate during the final three months of the year -- marking the second straight quarter of growth -- and better than the 4.5 per cent rate that economists had expected.

But despite the solid performance, investors worry about economic conditions later in the year and are doubtful the American economic pace of growth can be sustained.

"You would think there would be a better response," said Serge Pepin, director of investments at BMO Investments.

"This week has been somewhat of a down week and I think it's more like, yeah, this is nice but there are still structural problems in the economy," he said.

"People at this point are going, 'What to do? It's better than I thought it would be but I'm not willing to commit."'

The base metals sector was the biggest drag, down 3.5 per cent as March copper lost five cents to US$3.05 a pound after closing Thursday at a two and a half month low. Teck Resources (TSX:TCK.B) declined $2.02 to C$35.01 while Equinox Minerals (TSX:EQN) fell 22 cents to $3.47.

The gold sector was down 3.56 per cent as the February bullion contract on the Nymex eased 60 cents to US$1,083 an ounce. Barrick Gold Corp. (TSX:ABX) lost $1.20 to C$37.12.

Canplats Resources Corp. (TSXV:CPQ) said Thursday that holders of its shares, options and warrants have approved a takeover of the company by Goldcorp Inc. (TSX:G). Goldcorp shares were down $1.65 to C$36.24 and Canplats was ahead a penny to $4.74.

Also tugging materials sector stocks lower was market heavyweight Potash Corp. (TSX:POT), which fell $5.34 or 4.8 per cent to C$105.92 on top of Thursday's 4.5 per cent dip after the company delivered a disappointing earnings report.

The industrials sector was also a weight, down 1.98 per cent as Canadian National Railways (TSX:CNR) dropped $1.33 to $53.32 and Canadian Pacific Railway (TSX:CP) fell $2.28 to $50.48.

The tech sector also weighed on the Toronto market, losing 1.7 per cent despite a solid earnings report Thursday from Microsoft Corp., losing per cent with Research In Motion Ltd. (TSX:RIM) falling $1.36 to $67.47.

The TSX energy sector turned negative alongside oil prices. The February crude contract on the New York Mercantile Exchange was down 75 cents to US$72.89 a barrel and the group stepped back 1.2 per cent. Canadian Natural Resources (TSX:CNQ) was 81 cents lower to C$68.25 while Suncor Inc. (TSX:SU) moved down 59 cents to $33.76.

The TSX Venture Exchange moved 9.65 points lower to 1,492.15.

New York markets were also lower even as other data showed a rise in consumer sentiment and rising manufacturing activity in the U.S. Midwest.

The Dow Jones industrial average fell 53.13 points to 10,067.33 as the Chicago Purchasing Managers Index rose to 61.5 from 58.7 in December.

The Chicago PMI is considered a leading indicator to the national Institute for Supply Management manufacturers' survey for January to be released on Monday. Economists expect the January ISM manufacturing composite to increase to 56.0 from a revised December reading of 54.9

And the University of Michigan consumer sentiment survey's index rose to 74.4 in January from 72.5 in December. It's the highest level reached since January 2008.

The Nasdaq composite index was 31.65 points lower to 2,147.35 while the S&P 500 index was 10.66 points lower to 1,073.87.

In corporate earnings, Canadian Oil Sands Trust (TSX:COS.UN) recorded fourth-quarter net income of $96 million, or 20 cents per unit, down from $124 million, or 26 cents per unit, a year earlier. Revenues were $863 million for the quarter, up from $704 million a year earlier. Its units shed cents to $

Microsoft Corp. said Thursday its earnings in the most recent quarter jumped 60 per cent, as a rebound in the personal computer industry drove sales of the company's latest Windows operating system. Its shares lost 98 cents to US$28.18.

Amazon.com Inc. also reported better-than-expected earnings after the market closed Thursday, sending its shares lost early gains to lose 62 cents to US$125.41.