Statistics Canada says country’s economy grew 0.3 per cent in October

OTTAWA — The manufacturing sector helped the Canadian economy bounce back in October to post better-than-expected growth for the month to kick off the fourth quarter.

Statistics Canada said Friday the economy grew 0.3 per cent in October compared with a contraction of 0.1 per cent in September to end the third quarter.

Economists had expected growth of 0.2 per cent in October, according to Thomson Reuters Eikon.

TD Bank senior economist Brian DePratto said the Canadian economy recorded a solid expansion for the month.

“The breadth of the expansion was particularly encouraging, even as construction activity remained a weak point for a fifth straight month,” DePratto wrote in a note to clients.

He said the breadth of growth will come into play in the months and quarters ahead.

“November saw the worst of the discounts on Canadian oil blends, and voluntary production curtailments are likely to weigh on activity,” DePratto wrote.

“This will sap overall growth, even before mandatory production cuts come into effect in January.”

The Alberta government has mandated oil production cuts starting next year in a bid to help boost the price obtained by Canadian producers.

Paul Ferley, assistant chief economist at the Royal Bank, noted that while the bounce in GDP growth is encouraging, it is not expected to be sustained.

“Activity in November is expected to be weighed down by the Canada Post strike and a weakening in oil prices,” Ferley wrote.

“These factors, along with the disappointing momentum going into Q4, are projected to result in activity in the quarter only rising at an annualized rate of 1.1 per cent.”

Statistics Canada reported growth in 15 of the 20 industrial sectors that it tracked.

The manufacturing sector helped goods-producing industries increase 0.3 per cent after two monthly declines, while services-producing industries also grew 0.3 per cent, their strongest showing since May.

The manufacturing sector grew 0.7 per cent in October, almost fully offsetting declines in August and September.

Meanwhile, the finance and insurance sector rose 0.9 per cent, while the wholesale trade sector gained 1.0 per cent.

In a separate report, Statistics Canada reported retail sales increased 0.3 per cent to $51 billion in October, boosted by higher sales at motor vehicle and parts dealers and gasoline stations.

Economists had expected an increase of 0.4 per cent.

Sales at motor vehicle and parts dealers were up 1.3 per cent, while gasoline stations gained 1.9 per cent in October.

Excluding these two subsectors, overall retail sales fell 0.4 per cent.

The Canadian Press

economy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

“Our members have decided they just can’t do this anymore. We’ve protected this province and you’ve treated us like dirt, so enough is enough,” says AUPE vice-president Bonnie Gostola, whose members protested outside the Red Deer Regional Hospital Centre on Momday. (Photo by SUSAN ZIELINSKI/Advocate staff)
Updated: Hospital workers strike in Red Deer

Some surgeries and ambulatory care clinics postponed around the province

Alice Kolisnyk, deputy director of the Red Deer Food Bank, says the agency expects an increase in demand as the COVID-19 pandemic continues. Every new subscription to the Red Deer Advocate includes a $50 donation to the food bank. (Photo by BYRON HACKETT/Advocate Staff)
Support the food bank with a subscription to the Red Deer Advocate

The community’s most vulnerable members are always in need of a hand,… Continue reading

The Red Deer Regional Hospital Centre could be affected by cuts to Alberta Health Services announced by the government Tuesday. (Photo by BYRON HACKETT/Advocate Staff)
David Marsden: Yes, we know how to do laundry

Union leaders would have us believe there’s something special about their members:… Continue reading

Pumpkins for the 46th Annual WDACS Pumpkin Ball on display at Vision Credit Union Wetaskiwin. Shaela Dansereau/ Pipestone Flyer.
46th Annual Pumpkin Ball held virtually this year

This year the pumpkins were sold over a six-day online auction.

Email letters to editor@interior-news.com
Removing Molly Banister extension makes no sense

Re: “Removing road extension would be ‘terrible,’ says former city manager,” Oct.… Continue reading

jj
NDP is certain to tire of propping up Trudeau’s Liberals

To impose his will on the House of Commons, Prime Minister Justin… Continue reading

Mariah Bell of the United States competes during women’s freestyle program in the International Skating Union Grand Prix of Figure Skating Series Saturday, Oct. 24, 2020, in Las Vegas. (AP Photo/David Becker)
Canadian Keegan Messing earns bronze at Skate America in Vegas, Chen wins gold

Messing earns 266.42 points at Skate America in Las Vegas

In this Oct. 7, 2020 photo, chef Sohla El-Waylly prepares Swedish meatballs during a taping of “Stump Sohla,” in New York. El-Waylly became a familiar face on YouTube as a standout on Bon Appetit’s test kitchen channel. But during the nationwide racial reckoning following the police killing of George Floyd, she was among members of the test kitchen who accused the channel’s owner, Conde Nast, of discriminatory practices. She departed Bon Appetit in August after failed negotiations. Her new show is her own, pushing her to deploy her talent, charm and encyclopedic culinary chops to solve challenges. (AP Photo/Mary Altaffer)
‘Babish’ expands as pandemic boosts YouTube cooking shows

Daily views of videos with “cook with me” soaring

Most Read