The Toronto skyline in Canada

Canada GDP October 2018

Canada: Economic activity rebounds in October

The economy expanded 0.3% month-on-month in October, following a 0.1% contraction in September and beating analysts’ expectations of a 0.2% expansion. According to Statistics Canada, 15 of the 20 industrial sectors posted gains over the previous month, while manufacturing was the main driver behind October’s reading, nearly canceling out the losses recorded in September and August. The finance and insurance and wholesale trade sectors also performed well. Moreover, oil and gas extraction increased in October, although the rest of the mining, quarrying, and oil and gas extraction sector was down.

On an annual basis, growth ticked up to 2.2% from 2.0% in September. Meanwhile annual average growth inched down to 2.5% from 2.6% a month earlier.

Responding to October’s GDP reading, Brian DePratto, senior economist at TD, noted:

“Not too shabby. After a couple of months treading water, the Canadian economy recorded a solid expansion in October. The breadth of the expansion was particularly encouraging, even as construction activity remained a weak point for a fifth straight month.”

Nevertheless, DePratto’s outlook on the economy remained downbeat:

“November saw the worst of the discounts on Canadian oil blends, and voluntary production curtailments are likely to weigh on activity […] This will sap overall growth, even before mandatory production cuts come into effect in January, expected to drag 2019Q1 growth lower by roughly a percentage point.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest