OTTAWA: Canada’s economic growth slowed in line with expectations to 1.0 percent in the third quarter, the national statistical agency said Friday.
Household and government spending were up, but lower investment and exports along with a slower accumulation of business inventories dampened growth, said Statistics Canada.
The third quarter reading follows two quarters of stronger growth — 2.2 percent revised upward in the second, and 2.0 in the first.
The GDP figure was widely anticipated ahead of a Bank of Canada interest rate announcement. Analysts expect another rate cut that would be the bank’s fourth in a row from a two-decades high. According to Statistics Canada, household spending rose on new trucks, vans and sport utility vehicles, as well as for financial services, while spending on accommodation and food services fell.
Government expenditures increased for a third consecutive quarter, while business spending on machinery and equipment decreased but rose on research and development and mineral exploration, the agency said.
Exports declined more than imports.
Home resales were up in the quarter, but spending on new construction and renovations fell, amid a housing crunch.
Comments