Canada’s economy took a pause in October, with gross domestic product (GDP) unchanged from the previous month.
Analysts had estimated that Canada’s GDP would grow 0.2% from September, based on some of the recent October economic data released earlier this week by Statistics Canada.
Goods-producing industries were down 0.4% from September figures and service-producing industries were up 0.2%, it said.
CIBC economist Nick Exarhos said “the mood was running high” ahead of Friday’s report, but said strong wholesale and retail trade volumes reported earlier this week didn’t translate into the same degree of value-added growth.
Statistics Canada said the value of wholesale trade was up 1.4% from September, and the value of retail trade was up 1.1%.
“Collectively, they contributed a bit more than one tick to GDP, roughly half of what we would have expected heading into the release,” Exarhos wrote in a note to clients.
Exarhos added that the mining, oil and gas sector was also softer than expected despite reports of strong production.
Statistics Canada said that mining, quarrying and oil and gas extraction declined 1.1%.
The agency reported that nine of the 20 industrial sectors that it monitors expanded in October, including manufacturing, which was up 0.1%.
“Except manufacturing, output in all goods-producing industries fell,” noted Arlene Kish, director for Canadian economics at IHS Markit.
Statistics Canada said the mining, quarrying, and oil and gas extraction sector was down 1.1%.
“The drag from the oil and gas and mining industry was mostly related to maintenance operations within non-conventional oil activity . . . However, it should be noted that mining and quarrying activity as well as support activities for the entire sector were also down in the month,” Kish wrote.
There were also contractions in the construction sector (down 0.1%) and utilities (down 1.3%)