According to Statistics Canada, gross domestic product fell 0.1% in November, a trend that can be explained by the decrease in energy production.
The performance of the Canadian economy slowed down in November, according to Statistics Canada results published at the end of January. The drop of 0.1% followed zero growth in October and monthly increases from June to September. Lower output in the energy sector accounted for most of this decline, as oil and gas extraction fell 2.5%, in part due to maintenance shutdowns.
Growth in manufacturing output
This data deflated the expectations of forecasters, who were expecting an expansion of 0.2% in November, based on the gains in manufacturing, retail trade and exports. Manufacturing increased for the third month in a row, reaching 0.6% in November, with growth based mainly in the production of durable goods (+ 0.9%). Manufacturers of machinery and transportation equipment, including automobile manufacturers, benefitted from an increase in foreign demand during the month. Retail trade also continued its climb with an increase of 0.6% in November, the result of increased activity at motor vehicle and parts dealers and at clothing stores.
Other sectors
Construction saw a decrease of 0.3% in November, mainly due to the decrease in residential and non-residential construction. In contrast, activity in the home resale market increased, translating into an increase of 2.2% in real estate agent and broker activity. Finance and insurance (- 0.4%) and utilities (- 0.6%) also declined.