In the third quarter, gross domestic product (GDP) added 1.0% in seasonally adjusted annualised terms, undershooting market expectations, which had seen GDP expanding 1.4%. The reading, which was half the 2.0% expansion recorded in Q2 represents the second consecutive quarter of decelerating economic growth. The domestic sector remained strong, as growth in private consumption accelerated to 3.5% (Q2: +2.1% saar) and business fixed investment expanded 9.4%, after having grown 13.1% in the second quarter. The weak third quarter reading was led by a slowdown in the external sector, as exports contracted 5.0% contrasting the 5.0% growth experienced in the second quarter while imports grew 6.4% in the third quarter (Q2: +19.0% saar). The net contribution from the external sector to overall economic growth improved somewhat from a 5.6 percentage-point detraction in the second quarter to a 4.2 percentage-point decrease in the third quarter. Due to the weak economic growth experienced in the third quarter, the Bank of Canada decided to maintain interest rates at 1.00% at its latest monetary policy meeting held on 7 December. The move was not unexpected with the Bank likely to put policy tightening on hold unless the economic recovery is more pronounced in the months to come.
Economic growth slows in third quarter
November 30, 2010
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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.