GDP growth exceeds analysts' expectations

Canada’s economy grew 0.3% in October, above expectations of 0.1% but less than the 0.4% growth experienced in September

British Columbia’s teachers helped fuel the growth by returning to work in mid-September pushing up education production by 2.6%.

Leading the growth charge, however, was mining, oil and gas, which saw gains of 1.2%. Mining was up due to an increase in potash production while oil and was pushed by a rise in non-conventional oil production.

The growth came before the dramatic drop in oil prices. But that price drop shouldn’t affect Canada’s gross domestic product – how economic growth is measured – until producers lower production, BMO economist Benjamin Reitzes said in a note.

“Given the long-term nature of many oil patch projects (think big oil sands investments with a multi-decade lifespan), production may not slow materially, though the growth in production will likely slow through 2015,” Reitzes wrote.

Utilities was the biggest loser, dropping 1.8% as demand for both electricity and natural gas fell. 

The United States, on the other hand, reported annualized growth of 5% for the third quarter, well above Canada’s anticipated 2.5% annualized Q4 growth, and higher than the 4.3% growth that was forecast.

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