Canada: Economic activity contracts in November
January 31, 2019
Matching analysts’ expectations, the economy shrank 0.1% month-on-month in November, following a 0.3% month-on-month expansion in October. According to Statistics Canada, 13 out of the 20 industrial sectors posted gains over the previous month, but this was more than offset by decreases in the wholesale trade, finance and insurance, manufacturing and construction sectors.
On an annual basis, growth ticked down to 1.7% from 2.2% in October, while annual average growth inched down to 2.4% from 2.5% a month earlier.
Dissecting November’s print, Benoit P. Durocher, senior economist at Desjardins, noted that:
“Some one-time factors contributed to a decline in output for November. Production in oil refineries was down
due to maintenance work. An unusual retooling and production schedule hampered the automobile industry. The rotating strike
at Canada Post disrupted the transportation sector. A violent storm on the east coast impacted oil and gas extraction activities.
That said, all of these sectors could bounce back in December.”
Author: Steven Burke, Economist