Economy grew 0.2 per cent in November, fifth straight monthly increase: StatsCan
January 31, 2014 by The Canadian Press
The economy grew by 0.2 per cent in November compared with October, boosted by the resource sector, marking the fifth straight monthly increase, according to Statistics Canada.
The increase matched the expectations of economists and was just below the 0.3 per cent gain in October.
“While looking somewhat deep into the rear-view mirror, the decent month continues to point to a sturdy end to 2013 for the Canadian economy,” BMO chief economist Doug Porter wrote in a note. “The three-month trend in growth is now running at a nifty 3.8 per cent annualized clip, and output is up 2.6 per cent from a year ago.”
Statistics Canada said the output of goods-producing industries rose by 0.4 per cent in November, led by an increase in oil and gas extraction, which rose 2.6 per cent.
Mining and quarrying was up 1.3 per cent, while utilities gained 2.1 per cent as cold weather boosted demand for electricity and natural gas.
Manufacturing was down 0.5 per cent. The output of service industries rose 0.2 per cent as retail trade gained 0.8 per cent. Wholesale trade lost 0.6 per cent.
TD Bank economist Leslie Preston said with two out of three months now in hand for the fourth quarter, the economy looks to have built on the momentum of the third quarter.
“However, the quarter likely ended on a sour note in December, as severe winter weather led to power outages and otherwise crimped activity in many parts of the country,” Preston wrote in a report. “That leaves the economy with very weak momentum heading into the first quarter of 2014, which could now see a more modest growth tally.”
The Bank of Canada said in its monetary policy report that economic growth in the second half of 2013 was better than expected and should pick up from an estimated 1.8 per cent in 2013 to 2.5 per cent both this year and next.
The central bank expects global growth — led by stronger momentum in the U.S. — to rise from 2.9 per cent in 2013, to 3.4 per cent and 3.7 per cent in the following years.