Canada: GDP unchanged in October
December 23, 2015
In October, monthly GDP remained unchanged over the previous month in seasonally-adjusted terms. The tally was an improvement over the 0.5% contraction registered in September; however, it was under the 0.2% growth the markets had expected. The reading indicates that Canada’s economy entered the fourth quarter on a weak note, and bodes poorly for Q4 growth prospects. Contractions in manufacturing, utilities and retail trade offset growth in mining, quarrying as well as in the public sector. Gains in the mining sector mainly indicated a recovery from last month’s decline; other extraction activities followed a similar pattern. Canada’s manufacturing sector – a key sector in the Bank of Canada’s plan to improve export growth – fell 0.3% in October.
On an annual basis, GDP fell 0.2% in October, which was below September’s 0.1% expansion. The overall trend slid slightly as the annual average variation in GDP fell from 1.2% in September to 1.0% in October.
Author: Robert Hill, Economist