Canada GDP Growth At 2-Year High of 0.9% in Q3

The Canadian economy expanded 0.9 percent on quarter in the three months to September of 2016, following a downwardly revised 0.3 percent contraction in the previous period. It is the highest growth rate since the second quarter of 2014, boosted by exports of energy while domestic demand slowed. Expressed at an annualized rate, the economy expanded 3.5 percent, better than market expectations of 3.4 percent.
Statistics Canada | Joana Taborda | 11/30/2016 1:48:40 PM
Exports increased 2.2 percent, following a 3.9 percent drop in the previous period. Growth was driven by a 6.1 percent increase in the energy sector, following a 5.1 percent decline in the second quarter as a result of the Fort McMurray wildfires. Exports of goods grew 2.3 percent, while services advanced 1.4 percent. Imports went up 0.8 percent, following a 0.4 percent rise in the previous period. 

Growth in household final consumption expenditure was 0.6 percent, a similar pace to the previous two quarters. The growth was mainly in services (+0.9 percent). Expenditures on goods increased 0.3 percent despite a 0.6 percent decline in outlays on durables, particularly motor vehicles. Investment in residential structures (-1.4 percent) fell for the first time since the first quarter of 2014.

Government final consumption expenditure declined 0.3 percent following a 1.3 percent increase in the second quarter.

Business investment on machinery and equipment fell 3.2 percent in the third quarter, while intellectual property products declined 4.5 percent on reduced investment in mineral exploration and evaluation (-26.3 percent). Investment in non-residential structures rose 3.7 percent, largely due to the import of a module destined for the Hebron offshore oil project in Newfoundland and Labrador.

Businesses added $4.8 billion to inventories, as manufacturing, wholesale and retail inventory levels all increased. Retail inventories of motor vehicles grew by $3.0 billion in the third quarter.

Canada GDP Growth At 2-Year High of 0.9% in Q3