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.

Just Posted

No changes to Teck pollution limits, says Province

The B.C. Ministry of Environment has moved to quash fears mining pollution… Continue reading

Local volleyballers steal silver at provincials

Team entered tournament ranked 14th, finished second out of 56 teams

Structure fire displaces Sparwood family

Family uninjured. One pet lost. House remains uninhabitable due to severe damage.

Junior journalism program launches in Fernie

Young writers excited to step into world of journalism, work to be published in upcoming edition

New MRI unit increases access

Interior Health aims for 5100 exams in Cranbrook this year

Homeless activists outside Notre Dame demand ‘a roof too’

Wealthy people have donated millions to effort to rebuild cathedral after devastating fire

Fernie Senior Citizens Club celebrates 60 years

A lot has changed at the Senior Citizens Club in 60 years… Continue reading

Sri Lanka invokes war-time military powers after nearly 300 killed in Easter bombings

Sri Lanka’s minister of tourism says 39 foreign tourists were killed in the Easter Sunday attacks

Ex-mayor of northern village claims its drivers are overpaying ICBC $1,800 a year

Darcy Repen says data shows Telkwa households are being ripped off for car insurance

Deadly synthetic drug found in Kamloops that puts users in ‘zombielike’ state

Interior Health warning says substance causes ‘speedy, trippy-like symptoms’ and hallucinations

Trudeau to be portrayed on ‘Simpsons’ episode

Toronto journalist who’s posted videos of himself doing impressions of the PM voiced him for the show

Elizabeth May’s wedding dress a ‘walk through a garden’ on Earth Day

Green Party leader set to get married in Victoria

Bodies of 3 mountain climbers recovered after last week’s Banff avalanche

The men disappeared while attempting to climb the east face of Howse Peak in the Icefields Parkway

B.C. fire department rescues kittens

Enderby homeowner not aware kittens in wood pile near garbage pile fire that got out of hand

Most Read