Canada GDP Rises in Third Quarter, But Slows From Second Quarter

By: Tomas Ronolski - AllPennyStocks.com News

Friday, November 29, 2024

Boosted by higher household and government spending, Canada's economy grew 1 percent annually in the third quarter, while spending on machinery, including aircrafts slowed, and exports declined more than imports. The print matched consensus expectations but was below the Bank of Canada's forecast of 1.5 percent annual growth and a slower pace than the 2.1 percent rise in the second quarter.

Real gross domestic product (GDP) expanded by 0.1 percent in September, which was below analysts' expectations. Flash estimates from StatsCan showed that October's GDP was likely to increase by 0.1 percent.

Government spending rose for the third consecutive quarter, and household spending was driven by spending on new trucks, vans and sports vehicles, as well as financial services. Spending on food services and accommodation declined. GDP per capita fell 0.4 percent in the third quarter, the sixth consecutive quarterly decline.

The data points to a weaker trend in growth than expected by the Bank of Canada, further supporting a 50 basis point cut at the central bank’s December meeting.

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