Canadian economy grew 0.3 per cent in November

OTTAWA -- Canadian economic growth crept upwards in November by 0.3 per cent -- the first sign of life in the monthly data since August when there was a razor-thin increase of 0.1 per cent.

See Full Article

Statistics Canada's latest reading for real gross domestic product followed zero growth in October and a contraction of 0.5 per cent in September.

The federal agency said Friday that November's GDP growth was mostly due to increased activity in retail and wholesale trade, energy extraction and manufacturing.

Wholesale trade bounced back to expand 1.3 per cent in November after shrinking for four-straight months, the report said.

Growth in retail trade increased 1.2 per cent following an October contraction of 0.2 per cent, while manufacturing saw an increase of 0.4 per cent after falling for two consecutive months, Statistics Canada said.

Overall natural resources extraction rose 0.6 per cent in November, the report said. Oil and gas extraction increased 2.1 per cent to help offset the weight of the mining and quarrying component, which declined 2.3 per cent.

Downward pressure on GDP -- a broad measure of the economy -- also came from the finance and insurance sector, which contracted 0.3 per cent for its fourth-straight monthly decline.

The GDP reading was released as Canada limps through the net negative effects of a commodity price shock that began in late 2014 and continues in early 2016.

The figure tees up a potentially weak GDP number for the fourth quarter amid downgraded expectations for the final three months of 2015.

The Bank of Canada recently lowered its GDP forecast for the fourth quarter to 0.3 per cent, down from 0.7 per cent. Earlier this month, the central bank also decreased its GDP prediction for the first quarter of 2016 to 0.8 per cent and for the second quarter to 1.4 per cent.

Canada's economy fell into the technical definition of a recession in the first half of 2015 when GDP fell for two straight quarters. It decreased at an annual pace of 0.7 per cent over the first three months of 2015 and again by 0.3 per cent in the second quarter.

In the third quarter, however, GDP rebounded by generating 2.3 per cent growth.



Advertisements

Latest Economic News

  • Takata Corp. files for bankruptcy in Japan and U.S. following air bag recalls

    Economic Toronto Sun
    Japanese air bag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators. The company announced the expected action Monday morning Tokyo time. Source
  • From condoms to caskets: merchandise marks Canada's 150th birthday

    Economic CBC News
    It's been said that Canadians are not brash about their patriotism, but you wouldn't know it from the variety of merchandise, big and small, being snapped up in advance of Canada's 150th birthday July 1. From T-shirts to hats, flags to flasks, condoms to caskets, goods adorned with celebratory logos are popping up faster than you can say sesquicentennial. Source
  • Canadian lumber producers brace for second round of softwood lumber duties

    Economic CTV News
    MONTREAL -- Canada's softwood lumber industry is bracing for a second wave of U.S. duties expected to come Monday that could put further pressure on producers, particularly smaller ones, to cut jobs. The U.S. Source
  • Warning labels might be coming to cheese: CBC's Marketplace consumer cheat sheet

    Economic CBC News
    Miss something this week? Here's the consumer news you need to know from CBC-TV's Marketplace. Get this in your inbox every Friday. Sign up here. Fake drugs American prosecutors accuse CanadaDrugs.com and its CEO Kris Thorkelson of selling unapproved and counterfeit cancer drugs to U.S. Source
  • Debt, protectionism could drag down improving global economy

    Economic CTV News
    FRANKFURT -- The global economy has picked up and prospects for the next few months are the best in a long time. But the recovery is maturing and faces risks from populist rejection of free trade and from high debt that could burden consumers and companies as interest rates rise. Source
  • Air bag maker Takata bankruptcy expected Monday

    Economic CTV News
    DETROIT -- Drowning in a sea of lawsuits and recall costs, Japanese air bag maker Takata Corp. is expected to seek bankruptcy protection in Tokyo and the United States early Monday. Takata was done in by defective air bag inflators that can explode with too much force, spewing out shrapnel. Source
  • Air bag maker Takata files for bankruptcy in Japan, U.S.

    Economic CTV News
    Japanese air bag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators. The company announced the expected action Monday morning Tokyo time. Source
  • How Sears' troubles could hasten radical change in Canada's malls

    Economic CBC News
    Sears' plan to shut down 59 of its locations is grim news for the chain's landlords across Canada. Could it also spell doom for the nation's neighbourhood malls? Anchor tenants — typically big department stores — have always been a critical component of mall design. Source
  • Proposed rules for CRA amnesty program could expose more tax-cheat advisers

    Economic CBC News
    The Canada Revenue Agency is tightening its amnesty program for tax cheats, including a proposed rule that could expose more of the shady advisers who set up dodgy tax schemes to help clients hide their money. Source
  • Italian PM 'guarantees' savers' accounts in 2 troubled banks

    Economic CTV News
    ROME -- Italy's premier says holders of accounts in two troubled Italian banks will have their savings guaranteed despite insolvency proceedings. Premier Paolo Gentiloni was referring to Veneto Banca and Banca Popolare di Vicenza, each struggling with unpaid loans. Source