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

PHOTOS: Residents showcased as ‘companion’ sculpture unveiled

Amica White Rock welcomes bronze guardian, celebrates resident talent

Homemade explosives detonated in South Surrey

Police asking public for help identifying those responsible

Surrey students paint mural, paying homage to First Nations, at SkyTrain station

Artwork to showcase ‘positivity and racial inclusivity in the city’

White Rock highrise on hold after workers exhibit ‘severe’ overexposure symptoms

WorkSafeBC issued stop-work order at 1588 Johnston Rd. site on July 24

More than 50,000 checks: Surrey COVID-19 compliance, enforcement team’s role has ‘evolved’

Joint bylaw, RCMP team created to help with coronavirus education, support

‘Don’t kill my mom’: Ryan Reynolds calls on young British Columbians to be COVID-smart

‘Deadpool’ celebrity responds to premier’s call for social influence support

Captain Horvat’s OT marker lifts Canucks to 4-3 win over Blues

Vancouver takes 2-0 lead in best-of-7 NHL playoff series with St. Louis

PHOTOS/VIDEO: Wings and Wheels set for weekend lift-off in Abbotsford

Fundraiser to raise money for Crystal Gala Foundation and the fight against breast cancer

Undercover video shows alleged animal abuse at Fraser Valley egg farm

One employee wearing logo of Chilliwack chicken-catching company already facing abuse charges

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

Protesters showcase massive old yellow cedar as Port Renfrew area forest blockade continues

9.5-foot-wide yellow cedar measured by Ancient Forest Alliance campaigners in Fairy Creek watershed

Taking dog feces and a jackhammer to neighbourhood dispute costs B.C. man $16,000

‘Pellegrin’s actions were motivated by malice …a vindictive, pointless, dangerous and unlawful act’

Racist stickers at Keremeos pub leaves group uneasy and angry

The ‘OK’ hand gesture is a known hate-symbol

Most Read