Statistics Canada says pace of Canadian economic growth slowed in 3rd quarter

Canadian economy grew at an annualized pace of 2.0 per cent in the third quarter compared with 2.9 per cent in the second quarter

The pace of economic growth in Canada slowed in the third quarter as business investment spending moved lower and the growth in household spending slowed, Statistics Canada said Friday.

The Canadian economy grew at an annualized pace of 2.0 per cent in the third quarter compared with 2.9 per cent in the second quarter, matching the expectations of economists, according to Thomson Reuters Eikon.

The overall move came as spending on non-residential investment in buildings and engineering structures fell 1.3 per cent, as investment in the oil and gas sector slowed. Machinery and equipment investment by businesses fell 2.5 per cent.

Meanwhile, the growth in household spending slowed to 0.3 per cent in the quarter, compared with 0.6 per cent in the second quarter. The drop came as spending on durable goods fell 0.7 per cent, with spending on vehicle purchases falling 1.6 per cent.

Total residential investment also fell 1.5 per cent as spending on new home construction fell 4.7 per cent, the largest decrease since the second quarter of 2009. Renovation spending fell 2.0 per cent, while ownership transfer costs rose 7.1 per cent.

The quarter ended on a weak note as real gross domestic product edged down 0.1 per cent in September. Statistics Canada noted it was the first move lower after seven consecutive months of growth.

The agency attributed September’s move lower to lower output across all goods-producing industries which slipped 0.7 per cent. Services industries edged up 0.2 per cent.

In its fall monetary policy report, the Bank of Canada had forecast growth at an annual rate of 1.8 per cent in the third quarter.

The Bank of Canada raised its key interest rate target in October to 1.75 per cent, its highest level in about a decade.

Economists generally do not expect the central bank change the rate at a scheduled announcement next week, but expectations are for another rate increase in January.

Craig Wong, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Salmon Arm women bring soccer to girls in Kenyan village

Cultural disconnections melt away with learning and laughter

Vandals on ATV damage outdoor skating rink in Silver Creek

Damage delays preparations for ice surface in community park

Letter: Spouse of Shuswap first responder shares challenges, gratitude

One in three first responders suffer in silence, resources available to help them and their families

Water quality advisory issued for Sunnybrae water system

Not a boil-water advisory but users urged to take precaution

Uptown Tim Hortons intersection in Salmon Arm bumped from traffic circle plan

Shuswap Street and 10th Avenue SW, Kal Tire at 5th Avenue and 10th Street SW now top priorities

Get your head out of clouds, North Okanagan

Fall fog sticks around all day in northern portion of valley

Highway 97 in Lake Country reopens after police incident near Airport Inn

Traffic was backed up on the highway for several hours

Canucks erupt with 5 power-play goals in win over Nashville

Vancouver ends three-game slide with 6-3 triumph over Predators

Shuswap farm receives award for high animal welfare standards

Keenan Family Farms also recognized for sustainable agriculture methods

65-million-year-old triceratops makes its debut in Victoria

Dino Lab Inc. is excavating the fossilized remains of a 65-million-year-old dinosaur

B.C. widow suing health authority after ‘untreatable’ superbug killed her husband

New Public Agency Health report puts Canadian death toll at 5,400 in 2018

Changes to B.C. building code address secondary suites, energy efficiency

Housing Minister Selina Robinson says the changes will help create more affordable housing

Most Read