Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.
Economic Growth Highest Since MarchTuesday, February 01, 2011 > 10:35:51
Product sales, real estate, finance and insurance grow, manufacturing shrinks
Canada's economy grew by 0.4% in November, the biggest expansion in eight months and ahead of October's 0.2% gain. It was the second consecutive gain for the country's gross domestic product, Statistics Canada reported Monday. Economists had been expecting a 0.3% gain for the month.
"Prior to today’s surprisingly perky result, it looked like the economy may have struggled to even hit two per cent," BMO economist Doug Porter said. "The Canadian economy looks to have ended 2010 on an upswing after a mid-year lull." The solid November gain puts GDP for all of Q4 handily on track for the Bank of Canada’s latest call of 2.3%, Porter noted. But he expects several more months of solid gains would be needed to convince the central bank to step out from the sidelines and hike its benchmark interest rate to cool the economy.
Oil and gas extraction led the way with a 2.4% increase in output. Wholesale and retail trade, real estate, and the finance and insurance sector also expanded, while manufacturing declined. There was also a widespread increase in the home resale market, leading to a 7.6% rise in the output of real-estate agents and brokers, the industry's fourth consecutive monthly increase. But support activities for mining, oil and gas extraction declined 3.4% due to decreases in rigging and drilling activities.
Summary statistics and a link to the data file are on the Statistics Canada website at http://www.statcan.gc.ca/daily-quotidien/110131/dq110131a-eng.htm