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

Iconic white raven returns to Parksville Qualicum Beach area

Photographer John Domovich: ‘It blew me away when I first observed it’

Qualicum Beach man arrested over racist incident at Tseshaht First Nation

Port Alberni RCMP said the man turned himself in

COVID-19: City of Parksville announces gradual re-opening plan

Sports courts and playgrounds to open June 5

Search and rescue crews help locate 62-year-old Nanoose Bay mountain biker

RCMP: Man got lost on trail and did right thing by calling for assistance

RCMP: Parksville cyclist hurt after being clipped by passing vehicle

59-year-old man suffered minor injuries; driver failed to stop

March dental conference key to many of B.C.’s COVID-19 cases

Early infections from China, Iran were quickly contained

Cortes Island affordable housing project hangs by a thread

Regional decision makers resort to COVID-19 concerns despite virtual meeting option and push hearing to September

Facing changes together: Your community, your journalists

The COVID-19 pandemic has changed the world in ways that would have… Continue reading

MAP: Dr. Henry reveals which B.C. regions have seen most COVID-19 cases

B.C. health officials release a first look at how the novel coronavirus has reached all corners of the province

North Island recreation camping site closed due to vandalism

Damage happens every year, forcing site manager to reallocate improvement budget to repairs

Tla-o-qui-aht First Nation woman, 26, fatally shot by police in Edmundston, N.B.

Police were conducting a well-being check at the time of the incident

Seniors to receive up to $500 in promised COVID-19 emergency aid in early July

The Liberal government first promised the extra help in mid-May, but had to create a new system to deliver the aid

VIDEO: Revelstoke bear wanders into Animal House pet store

Staff got ready to chase it out with a broom

Man found dead in his tent at Island homeless camp

Facebook posts tell of personal struggles and attempts to stay clean and sober

Most Read