Canada GDP October 2015

Canada

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.

According to its October Monetary Policy Report, the Central Bank projects that the economy will grow 1.4% in 2016 and 2.4% in 2017. FocusEconomics Consensus Forecast panelists expect the economy to grow 1.7% in 2016, which is down 0.2 percentage points from last month’s estimate. For 2017, the panel expects the economy to expand 2.2%.


Author:, Economist

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Canada Monthly GDP October 2015

Note: Month-on-month changes of seasonally-adjusted GDP and year-on-year variation in %.
Source: Statistics Canada (SC) and FocusEconomics calculations.


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