Canadian economy still growing in October, but that growth is slowing in 2023, Statistics Canada speak.
The federal agency said Friday that the fact gross domestic product rose 0.1 percent in October, but its initial estimate for November showed little change that month.
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Revised figures from September show a 0.2% gain for the economy.
Services growth of 0.3% in October – led by the public sector, wholesale and customer contact – was offset slightly by a 0.7% decline from the goods-producing sectors.
Statistics Canada says the performing arts, spectator sports and heritage organizations grew 4.7% amid more Toronto Blue Jays games than usual in October and the start of the season. late in the NHL pre-season.
The agency said the cooling in commodity-producing industries in October was due to a drop in mining, quarrying, oil and gas production and weakness in the manufacturing sector.
TD Bank senior economist James Orlando said Friday’s report was in line with the bank’s expectations for 1% annual growth in the fourth quarter of the year.
But BMO senior economist Robert Kavcic questioned whether those results could withstand the weight of the Bank of Canada’s rapid rate hikes, which have risen 4 percentage points since the start. years in an effort to slow the economy and cool it down. of inflation.
“The Canadian economy is generally holding up relatively well through the end of 2022, largely because the services sector is now shouldering the weight,” he wrote in a note to clients Friday.
“But the real question will be how things play out in the first half of next year, as the Bank of Canada’s aggressive rate hikes start to work more effectively in the system.”
Orlando said slowing growth in Friday’s report shows that inflation remains high and interest rates rise are causing Canadians to “tighten their wallets.”
– with files from the Canadian Press
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