In the third quarter, GDP increased at a seasonally-adjusted annualized rate (saar) of 0.6% over the previous quarter. The result came in below both the 1.7% expansion recorded in the second quarter (previously reported: +1.8% quarter-on-quarter saar) and market expectations of a 0.8% rise. The deceleration in the third quarter mainly reflected a deterioration in fixed investment as well as in net exports. Private consumption grew 3.8% in the third quarter (Q2: +0.6% qoq saar), while government consumption expanded 1.2% (Q2: +0.1% qoq saar). Business fixed investment, on the other hand, swung from a 4.9% increase in the second quarter to a 2.9% decline in the third. That said, GDP growth was positively affected by a build-up in inventories. Meanwhile, exports of goods and services contracted 7.8% (Q2: +0.1% qoq saar), whereas imports rose 1.7% (Q2: +1.9% qoq saar). As a result, the contribution from net exports to overall economic growth deteriorated from minus 0.6 percentage points in the second quarter to minus 3.0 percentage points in the third.
Economic growth slows in the third quarter
November 30, 2012
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Canada GDP Chart
Note: Quarter-on-quarter changes of seasonally adjusted annualized GDP and year-on-year variation in %.
Source: Statistics Canada (SC) and FocusEconomics Consensus Forecast.
Canada Economic News
October 11, 2016
The Teranet-National Bank National Composite House Price index rose 0.7% in September from the previous month, which followed the 1.5% increase in August.
October 8, 2016
Seasonally-adjusted annualized housing starts registered 220,600 units in September, according to the government-owned Canada Mortgage and Housing Corporation (CMHC).
October 7, 2016
The Ivey Purchasing Managers’ Index (PMI), sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, increased a seasonally-adjusted 6.1 points in September, rising from 52.3 in August to 58.4.
September 30, 2016
In July, GDP grew a strong 0.5% over the previous month in seasonally-adjusted terms.
September 23, 2016
In August, seasonally-adjusted consumer prices recorded a 0.1% decrease over the previous month, which was down from the flat figure recorded in July and marked the lowest reading in six months.