Real gross domestic product fell 0.7% in November as essentially all major sectors reduced production, Statistics Canada said Friday.

The slide was deeper than the 0.4% drop forecast by Bay Street economists.

The output of manufacturing, wholesale trade, construction and real estate agents and brokers were the main contributors to the November decrease, StatsCan said. The transportation, energy, retail trade, finance and insurance sectors also retreated.

On the other hand, economic activity advanced slightly for some tourism-related industries, agriculture and the public sector (health, education and public administration combined).

Activity in the troubled manufacturing sector continued to decline in November (-2.1%), reaching a level of activity nearly 4% below that recorded in the first half of 2008. The decrease was widespread in November, with 18 of the 21 major groups losing ground, StatsCan said.

The decrease in domestic and foreign demand continued to hamper wholesale trade. The volume of wholesaling activity fell 3.1% in November.

Construction activities fell 1.2% in November.

The home resale market dropped considerably for a second month in a row, resulting in a 12.8% reduction in the output of real estate agents and brokers.

The output of the energy sector decreased 0.5% in November following a 1.0% gain the month before.

The output of the mining sector excluding oil and gas extraction fell 0.7% in November.

Value added in retail trade fell 0.5% in November, a second consecutive monthly decline.

The finance and insurance sector decreased 0.4% in November. A steep decline in the volume of trading on the stock exchanges, weak mutual fund sales, along with the softening of the output of banking and lending services, all contributed to the decrease.

South of the border, U.S. GDP fell at a 3.8% annual rate in the fourth quarter, the U.S. Commerce Department said.

Although it was the worst showing in a quarter century, Economists had forecast an even steeper 5.5% drop.

U.S. GDP fell just 0.5% in the third quarter.

IE