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.

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

Just Posted

‘So sorry:’ Man pleads guilty for gas-and-dash death of Thorsby gas station owner

Mitchell Robert Sydlowski was charged with second-degree murder, but the 29-year old pleaded guilty to the lesser offence

84 new cases of COVID-19 reported Friday

1,036 active cases across Alberta, 10,796 recovered cases

The photography trend that continues to climb: Best friend photo shoots

Rimbey photographer reflects on the growing demand for these lifestyle set shoots.

76 new cases of COVID-19 reported Thursday

Active cases at 1,036, 10,713 recovered cases

Wetaskiwin Regional Public Schools receive grant from Indigo Love of Reading Foundation.

WRPS has received $15,975 from the Indigo Love of Reading Foundation.

Premier Jason Kenney in Lacombe to introduce rural Internet

Shaw to provide 1g Internet to all AB residential customers

Widow of slain Red Deer doctor thanks community for support ahead of vigil

Fellow doctors, members of the public will gather for a physically-distanced vigil in central Alberta

VIDEO: World responds to B.C. girl after pandemic cancels birthday party

Dozens of cards and numerous packages were delivered to six-year-old Charlie Manning

U.S.-Canada pandemic border restrictions extended into September

‘We will continue to keep our communities safe,’ says Public Safety Minister Bill Blair

AB Infrastructure Minister announces $8,522,800 regional water transmission line

Funding is covered jointly by the province, Ottawa and benefiting municipalities

WE Charity registers as lobbyist, lays off staff, looking to sell real estate

WE Charity said its financial position has been greatly affected by the COVID-19 pandemic

Ermineskin Cree Nation has a new chief

There were seven challengers to incumbent, including NGCI president

Three people drown at Crescent Falls

Rocky Mountain House RCMP say the incident occurred Tuesday

Most Read