Canada's third-quarter annualised GDP surprises with growth of 2.6 percent

"Canada's economy grew at a much faster pace than expected in the third quarter as crude oil exports and government spending boosted economic activity, data shows, even as business investments and household consumption disappointed due to the lingering uncertainty over United States tariffs. Third-quarter annualised gross domestic product (GDP) grew 2.6 percent, Statistics Canada said on Friday, escaping what could have been a technical recession after a contraction in the previous quarter of a downwardly revised 1.8 percent."

"Analysts polled by the Reuters news agency had forecast annualised growth of 0.5 percent in the third quarter and monthly GDP growth of 0.2 percent in September. On a month-over-month basis, the economy matched analysts' predictions following a deceleration of an upwardly revised 0.1 percent in the prior month, StatsCan said, primarily driven by a 1.6 percent expansion in manufacturing output."

Third-quarter annualised GDP grew 2.6 percent, escaping what could have been a technical recession after a downwardly revised 1.8 percent contraction in the previous quarter. Crude oil exports and government spending boosted activity, while business investment and household consumption disappointed amid uncertainty over United States tariffs. Monthly GDP matched analysts' forecasts for September, supported by a 1.6 percent expansion in manufacturing, but an advance estimate showed GDP might decline 0.3 percent in October. Headline growth was flattered by a large drop in imports that masked underlying weakness in domestic demand. The third-quarter figure could face larger-than-normal revision in February because foreign merchandise trade data was unavailable due to the US government shutdown. The stronger reading reduced expectations of a Bank of Canada rate cut on December 10.

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