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

Unofficial holidays: Here’s what people are celebrating for the week of Sept. 27 to Oct. 3

World Farm Animals Day, Drink Beer Day and Virus Appreciation Day are all coming up this week

FOREST INK: Old growth forests under new management

On April 30, 2020, they submitted 14 recommendations to the Province in their report

No reported COVID-19 transmission in B.C.’s tree planting spring/summer effort

With the fall season winding up mid-October, it is hoped that trend will continue

Two new COVID-19 cases reported in Interior Health

The total number of Interior Health cases since the beginning of the pandemic is now at 522

World-class carver prefers the simple life

His work can be found in galleries around the world, but Kevin Peters prefers the quiet life.

B.C. records 98 more COVID-19 cases, most in Lower Mainland

One new senior home outbreak, Surrey Memorial outbreak over

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

$250K reward offered as investigation continues into Sea to Sky Gondola vandalism

Police also asking for specific footage of Sea to Sky highway around time of incident

Trudeau ‘disappointed’ by RCMP treatment of Sikh officers over mask issue

World Sikh Organization of Canada said taking Sikh officers off the front lines constitutes discrimination

Most Read