In its monthly GDP report, Statistics Canada said the Canadian economy grew by 0.3 per cent in October, following a 0.2 per cent increase in September, driven by strength in the mining, quarrying and oil and gas extraction sectors.
The growth came as services-producing industries grew 0.1 percent for the month, the agency said. Goods-producing industries rose 0.9 percent, following four consecutive months of declines.
Mining, quarrying and oil and gas extraction rose 2.4 percent in October, with increases in all three subsectors. The manufacturing sector rose 0.3 percent for the month, following four consecutive months of declines.
Real estate, rental and leasing rose 0.5 percent, marking its sixth consecutive monthly increase and the biggest increase since January.
“The Canadian economy is gaining momentum as we close out the year, and we expect growth close to two per cent in the fourth quarter,” Andrew DiCapua, a senior economist at the Canadian Chamber of Commerce, wrote in a note to clients. .
DiCapua noted that production recovered in October, while oil and gas exports increased ahead of potential tariffs imposed on Canada by the new US administration.
“If this momentum continues, it could impact the Bank of Canada's January decision and possibly slow the pace of rate cuts in the new year,” DiCapua wrote.
“However, we remain pessimistic about the challenges ahead, with tariffs, declining immigration targets and increasing uncertainty clouding the outlook for businesses.”
Statistics Canada's early forecast for November shows real GDP for the month 0.1 per cent lower as declines in mining, quarrying, oil and gas extraction, transportation and storage, and finance and insurance were partially offset by increases in accommodation and food services . real estate and renting and leasing.
