Economic growth in Canada took a breather in the third quarter, according to the latest data from Statistics Canada.
The national statistics agency revealed November 30 that real GDP rose 2% on an annualized basis.
That’s down from the second quarter, when Canada registered growth at 2.9%.
BMO chief economist Douglas Porter said there are two “significant gripes” with the latest results.
“One, the details were unimpressive with a capital U. Two, the monthly number was surprisingly soft, giving us a weak starting point for Q4,” he said in a note to investors, referring to September’s 0.1% drop.
Porter pointed out that growth in housing fell 5.9% at the same time business investment declined 7.1%, calling the latter’s decline a “big surprise.”
He said the bank is readjusting its prior call of 2.1% GDP growth for the fourth quarter down to a number closer to 1.5%.
