Canada's Economy Grew 0.1% in October on Service Industry Gains

Friday, 21 Dec 2012 07:46 AM

 

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Canada’s economy expanded for the first time in three months in October on increases in wholesale and retail trade.

Gross domestic product grew 0.1 percent to an annualized C$1.29 trillion ($1.30 trillion) after stalling in September and shrinking 0.1 percent in August, Statistics Canada said today in Ottawa. The increase matched the median forecast in a Bloomberg economist survey with 23 responses.

The Bank of Canada is relying on consumption and business investment to lead an expansion over the next two years, and forecast that growth will accelerate to a 2.5 percent annualized pace this quarter after slowing to 0.6 percent in the July- September period. Governor Mark Carney reiterated Dec. 4 he may raise interest rates even as central banks in Japan and the U.K. have been easing.

Wholesale trade increased 0.8 percent in October, rebounding from a 1 percent drop the month before, with gains in farm products, food and tobacco, Statistics Canada said. Retailing increased 0.3 percent on motor vehicle and part sales, according to the report.

Cadillac Fairview Corp. said Oct. 23 it will spend C$350 million to expand the Sherway Gardens mall in Toronto starting in January.

Oil and gas extraction rose 0.4 percent, according to the report, while a drop in coal production led a 0.4 percent decline for mining.

Manufacturing was the biggest drag on growth in October with a 0.4 percent decline, Statistics Canada said. Machinery making dropped and the temporary closure of an Alberta meat plant curbed food processing.

The National Hockey League’s lockout and the cancellation of games led to a 1.6 percent decline in arts, entertainment and recreation. The industry’s C$10.7 billion contribution makes up about 0.8 percent of the world’s 11th largest economy.

Gross domestic product grew 1.1 percent in October from a year earlier, Statistics Canada said.


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