Canadians shopping at the last minute ahead of Christmas already have one stocking stuffer prepared for the economy: a lump of coal.
The Canadian economy shrank 0.3% between September and October, according to Statistics Canada data released Friday (December 23).
All major goods-producing industries (-1.3%) fell in October, as well as the energy (-1.9%) tourism (-0.3%) and financial (-1.5%) sectors.
“The GDP report is an ugly snowball of reality to the face of the economy to end the year after a nice run earlier in the fall,” BMO chief economist Douglas Porter wrote in a note to investors.
“In what is traditionally the final economic report of the year in Canada, StatsCanserved up a dud to wrap up 2016.”
Economists were expecting a flat reading for economic growth in October.
“That said, the October GDP figures should be taken in the broader context,” TD economist Brian DePratto wrote in an investors’ note, adding the decline was not enough to wipe away September’s strong performance which is revised upwards to 0.4% growth.
@reporton
