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

  • CPP reform to help lift plan's assets above $15B by 2090: analysis

    Economic CTV News
    OTTAWA - The upcoming enrichment of the Canada Pension Plan will help fuel a 48-fold boost to the public fund's assets over the long haul - to more than $15.8 trillion by 2090, according to federal calculations. Source
  • Asian markets rise after Wall Street's sharp gains

    Economic CTV News
    SEOUL, Korea, Republic Of - Most Asian markets staged modest gains on Wednesday after overnight gains on Wall Street as geopolitical risks and turmoil at the White House that have dented investor sentiment in the past few weeks abated while investors eyed the annual gathering of central bankers. Source
  • B.C. seeks intervener status in court cases against Trans Mountain pipeline

    Economic CTV News
    VANCOUVER -- The British Columbia government has applied for intervener status in court challenges against the Trans Mountain pipeline expansion. The NDP government announced earlier this month that it would be joining the legal fight against Ottawa's approval of the $7.4-billion project and hired former judge Thomas Berger to provide legal advice. Source
  • Rising old age security spending dampened by CPP increases: report

    Economic CBC News
    A mandatory review of the country's largest seniors benefit program is predicting all-time highs in spending over the coming years with waves of baby boomer retirements — spending levels that could have been even higher if not for changes to the public pension program. Source
  • Calgary airport to convert Lexus-only stalls back to accessible parking

    Economic CTV News
    Calgary International Airport has apologized for moving accessible parking stalls and setting up a Lexus marketing campaign in their place. The pavement in the parking spots was painted to indicate they were reserved for drivers of the luxury car. Source
  • Rowdy Korean Air passenger's 3-year prison sentence reversed

    Economic CTV News
    HAGATNA, Guam -- A U.S. appeals court has struck down the three-year prison sentence of a rowdy Korean Air passenger convicted of interfering with flight attendants last year on a flight to Guam. The 9th U.S. Source
  • Striking ground crew at Toronto airport to vote on new offer from employer

    Economic CTV News
    TORONTO - The union representing striking ground crew workers at Canada's busiest airport says it has received a new contract offer that will be voted on tomorrow. About 700 baggage handlers, cabin cleaners, and other ground crew employed by Swissport at Toronto's Pearson International Airport have been on strike since late July. Source
  • June retail sales a bright spot for Canadian economy: economists

    Economic CTV News
    OTTAWA - Canadian retail sales rose slightly in June and continue to be a bright spot in the economy. Statistics Canada says in a report issued Tuesday that the retail sector's growth was 1.1 per cent, excluding automotive and gasoline sales. Source
  • CGI Group moves to expand in northern Europe with takeover of Affecto

    Economic CBC News
    Canada's largest publicly traded IT services business is moving to expand its presence in Europe through the acquisition of Affecto PLC in a friendly deal that would add about 1,000 staff in northern Europe. CGI Group Inc. Source
  • Big banks set to reveal profits this week against the backdrop of improving economy

    Economic CBC News
    Canada's biggest banks could deliver another profitable season for investors as third-quarter results starting to roll in this week are expected to get a boost from the strengthening economy. Analysts expect modest improvements from the Big Six banks, which launch their quarterly earnings reports beginning with Royal Bank on Wednesday, but some suggest the industry could outdo the conservative predictions. Source