Canada: Economic activity records a mild expansion in November
GDP expanded 0.1% month-on-month in seasonally-adjusted terms in November, following an increase in October of 0.1%. The November figure marked the joint-worst reading since January but was still the tenth consecutive month of growth. The main sectors contributing to growth were transport, finance and public administration. In contrast, construction, manufacturing and retail declined.
On an annual basis, GDP rose at a more moderate pace of 2.8% in November (October: +3.2% yoy), the worst result since February 2021.
A flash estimate suggested that GDP was broadly stable in December, bringing the quarterly expansion in Q4 to 0.4%.
On the reading, TD Economics’ James Orlando said:
“The Canadian economy continues to show its resilience, […] though will mark a step down from the 3% [GDP growth] trend of the prior three quarters. This deceleration was always on the cards given the historic Bank of Canada tightening cycle. Looking at the industry sector breakdown, we can see that the interest rate sensitive sectors are feeling the brunt of this, especially in the construction and retail sectors.”