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 suspects yet in Mid Island Bus arson case in Cowichan

A spokesperson for Mid Island Bus says the fire that torched five… Continue reading

Warren Goulding column: Letter to the editor was unfair

I’m always impressed with the volume of letters to the editor that… Continue reading

Sarah Simpson Column: It took two months but the cat came back

The column before last, I mentioned that a cat who’d gone missing… Continue reading

Bulldog from Chemainus will be a Wildcat next season

Hawthorne grateful for the chance to play Div. 1 in the U.S. after his BCHL development

T.W. Paterson column: Forbidden Plateau’s lost gold nuggets

“Time and time again the young men scoured the hills…”

VIDEO: Iconic ‘snow cone’ takes shape at B.C. park near Clearwater

Snow cone forming at Wells Gray Provincial Park one that would make Disney’s Queen Elsa proud

Coming up in Cowichan: Bowl for Kids; Leaders of Tomorrow

Bowl for Kids Sake coming up in Cowichan Valley on March 3… Continue reading

A ‘warm embrace’ for grieving parents at funeral of seven young fire victims

Mourners offered love and support to Kawthar Barho, mother of seven children

Indigenous leaders, politicians say Trans Mountain report flawed

The National Energy Board has endorsed an expansion of the Trans Mountain pipeline a second time

UPDATE: Reports of rashes prompt closure of all Harrison Hot Springs pools

Public pool available after Fraser Health shut down all five mineral pools until further notice

Legislation to protect B.C. farmland comes into effect

Regulations enhance food security, encourage long-term farming

Have you heard the legend of Shuswaggi, the Shuswap Lake monster?

Witness accounts as old as 1904, and as recent as 2018, place a creature in the lake’s depths

Credit card fraud steals $50,000 from Victoria businesses: police

Crime Reduction Unit investigating several frauds costing several businesses over $50,000

UPDATE: B.C. ticket holder winner of $25.9-million Lotto Max jackpot

Next draw set for Mar. 1 with an estimated jackpot of $10 million

Most Read