Canada’s gross domestic product expanded for the first time in three months in November on the manufacturing and wholesaling rebound, an indication the economy is shaking off the damage from a stop by commodity prices.
U.S. economic growth brakes sharply, rising only 0.7% as strong dollar weighs on exports
Output expanded 0.3 percent to an annualized $1.65 trillion, Statistics Canada said Friday in Ottawa, matching the median forecast inside a Bloomberg economist survey. Production had stalled in October and shrank 0.5 per cent in September.
Wholesaling rose by 1.3 percent, the largest gain in annually, and retail sales increased 1.2 per cent. Factory production rose 0.4 per cent with the first grow in three months led by durable goods for example wood and electrical products.
Related
- CIBC just downgraded 2016 outlook for Canadian economy for the second time in a monthJustin Trudeau’s pledge to keep debt declining in danger amid oil crunch, worsening economyWhy economists are beginning to make use of the ‘R’ word again
-
-
-
The expansion backs Bank of Canada Governor Stephen Poloz’s view that industries outside the energy sector will revive the economy’s momentum after output shrank within the first half of the year. The November expansion breaks a spell of negative developments, such as the decline of Canada’s dollar to the lowest since 2003 and warnings about overstretched housing markets.
A renewed slump in prices for oil along with other commodities stalled the economy within the fourth quarter and will delay its return to full capacity ’till the end of the coming year, Poloz said Jan. 20. The Governor also said he decided against cutting interest rates to record lows on indications of momentum in other parts of the economy, in particular non-energy, exchange-rate sensitive exports, and also because the government pledged to provide a program of deficit spending in the next budget.
Today’s report even showed what’s promising for the energy industry. Oil and gas extraction grew 2.1 per cent in November. Non-conventional production rose 3.4 percent, a part of a recovery from September’s 10.6 per cent drop triggered by production shutdowns.
Growth occured back as the construction industry’s output stalled, and also the finance and insurance industry shrank a fourth straight month.
Transportation and warehousing rose together with wholesaling and manufacturing with a 0.8 per cent grow in November, a sign manufacturers are beginning to reap the full benefit of the Canadian dollar’s 11 percent decline during the last year and increasing demand in the U.S.
Bloomberg.com
