Canada: Monthly GDP contracts in October
December 23, 2016
GDP dipped 0.3% in October compared to the previous month in seasonally adjusted terms, below the 0.4% growth recorded in September and marking the first fall in five months. October’s figure also came in substantially below analysts’ expectations of an entirely flat reading. According to Statistics Canada, October’s figure was driven by a drop in the manufacturing output of both durable and non-durable goods, and contraction in the mining, quarrying and oil and gas extraction, construction and finance and insurance sectors. In contrast, retail and wholesale trade rose in October over the prior month.
On an annual basis, GDP rose 1.5% in October, down from September’s 1.9% growth, while annual average economic growth was virtually unchanged at 0.8%.
Author: Oliver Reynolds, Economist