GDP contracted 0.1% in November

Overall contraction in the economy came despite gains in 13 of the 20 industrial sectors tracked

The Canadian economy weakened in November as the wholesale trade and manufacturing sectors pulled back.

Statistics Canada said Thursday real gross domestic product fell 0.1 per cent in November following an increase of 0.3 per cent in October.

The report was in line with estimates that the contraction would be 0.1 per cent for the month, according to Thomson Reuters Eikon.

Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets, said the report changes little for the Bank of Canada, but reinforces that they’ll be extremely patient with policy.

“The Canadian economy had a tough stretch through the latter stages of 2018, and the oil production cuts will make the early 2019 data look soft as well,” Reitzes wrote in a report.

“However, this weakness is fully expected, with fourth quarter and first quarter growth forecasted to average about one per cent.”

The Bank of Canada kept its key interest rate target on hold at its last rate announcement. In making its decision, the central bank noted that the drop in oil prices at the end of last year will weigh on the economy, but predicted that the effects of the slump will dissipate and allow growth to resume.

READ MORE: B.C. home sales to slide 23% this year, rise next year: real estate group

Fotios Raptis, senior economist at TD Bank, said further weakness in the oil sector is expected to continue to weigh on overall growth as Alberta’s mandatory production cuts took effect in January.

“The temporary slump in the oil sector, combined with elevated global economic uncertainty warrants patience on behalf of the Bank of Canada,” Raptis wrote in a report.

The overall contraction in the economy came despite gains in 13 of the 20 industrial sectors tracked.

The wholesale trade sector fell 1.1 per cent in November as machinery, equipment and supplies wholesaling pulled back 2.1 per cent.

The manufacturing sector also contracted 0.5 per cent for the month, the third decline in four months.

The mining, quarrying and oil and gas extraction sector fell 0.1 per cent as mining excluding oil and gas extraction and supporting activities were more than offset by a drop in oil and gas extraction.

Mining excluding oil and gas extraction grew 2.3 per cent, while oil and gas extraction fell 1.6 per cent.

Conventional oil and gas extraction fell 2.2 per cent, while non-conventional oil extraction dropped 0.9 per cent.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Interior Health leading the way with innovative therapy for stroke patients

Percentage of ischemic stroke patients who received treatment has risen dramatically

Missing Nelson woman found dead

Police say there is no evidence of a crime in the death of Heather Gunderson

Foul play involved in Slocan Valley man’s death, police say

RCMP have identified dead man as 47-year-old Aaron Graham

Hidden message connects Castlegar homeowners decades apart

The Rodgers family was surprised when a message fell out of the walls as they were renovating

Supreme Court of Canada will hear Sinixt appeal May 12

B.C. has appealed Indigenous hunting case through several levels of court starting in Nelson in 2016

VIDEO: Minister says consider coronavirus outbreak when planning for spring break

Foreign Affairs minister points to rash of new cases appearing in places like Italy and Iran

B.C. man who pulled a gun on off-duty cop gets two years in prison

Encounter also led police to a home where 100 guns and explosives were found

Protecting privacy key to stopping spread of COVID-19, B.C. health officials say

The number of coronavirus cases in B.C. remains at seven

COLUMN: Forestry no longer close to top of B.C.’s economy

Our reactions to a forestry downturn reflect the past, not the present

Caught on camera: Police release video of man who allegedly stole seaplane in Vancouver

Police say the man broke into the Harbour Air terminal and then got into one of the seaplanes in the harbour

51 health professionals send letter to Trudeau, Horgan panning northern B.C. pipeline

They point to studies about the health and climate change risks from pipeline

Fake meat and a latte? Starbucks adds Beyond Meat in Canada

The Seattle roaster has talked about introducing plant-based patties in the U.S., but has yet to do so

Most Read