"The Canadian economy shrank by a greater-than-expected 0.3 per cent in October, the largest drop in almost three years, on weakness in both the goods and services sectors, official data showed on Tuesday. Analysts had forecast that growth would dip by 0.2 per cent from September as the economy continues to adjust to U.S. trade measures. Last month, Statistics Canada reported 0.2 per cent GDP growth for September, and Canada avoided a technical recession largely due to a surge in defence spending."
"The goods sector fell 0.7 per cent in October, while services contracted by 0.2 per cent. The figures are unlikely to overly concern the Bank of Canada. Governor Tiff Macklem said on Dec. 10 that he expected growth the in the gross domestic product to be weak in the fourth quarter. The manufacturing sector dropped by 1.5 per cent, partly reflecting a 6.9 per cent plunge in machinery output."
Canada's GDP fell 0.3% in October, the largest monthly decline since December 2022, driven by weakness across goods and services. The goods sector declined 0.7% and services contracted 0.2%, while manufacturing dropped 1.5%, including a 6.9% fall in machinery output. Wood product manufacturing plunged 7.3%, the biggest drop since April 2020, following additional U.S. tariffs effective Oct. 14. Services were disrupted by a nationwide Canada Post work stoppage and a teachers' strike in Alberta. Initial November data pointed to modest growth, but momentum into Q4 is soft. The Bank of Canada held its policy rate at 2.25%.
Read at www.cbc.ca
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