Real gross domestic product (GDP) edged up 0.1% in November, following a +0.1% uptick in October. Growth in services-producing industries (+0.2%) was partially offset by a decline in goods-producing industries (-0.1%), as 14 of 20 industrial sectors increased in November, reported Statistics Canada on Tuesday.
Statistics Canada
“Advance information indicates that real GDP was essentially unchanged in December. Increases in the retail, utilities, and public sectors were offset by decreases in the wholesale, finance and insurance, and mining, quarrying, and oil and gas extraction sectors. This advance information indicates a 0.4% increase in real industry GDP in the fourth quarter of 2022 and a 3.8% increase for the year. Owing to its preliminary nature, these estimates will be updated on February 28, 2023, with the release of the official GDP data for December and the fourth quarter of 2022,” said the federal agency.
Nathan Janzen, Assistant Chief Economist, RBC Economics, said retail trade and accommodation & food service sales both declined in November.
“Consumer spending is still running at a high level, but the Bank of Canada’s Q4 survey of consumer expectations showed that higher inflation and interest rates were cutting into household purchasing plans, particularly for travel and hospitality services. The BoC has announced plans to pause interest rate hikes at current levels, but the 425 basis points of increases to the overnight rate over the last year has yet to fully pass through household purchasing power. We continue to expect household spending to slow going forward as debt servicing costs rise. That means early signs of easing inflation pressures are likely to persist, but also that GDP growth will likely dip into negative territory over the first half of this year.”
(Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald, covering sports, crime, politics, health, faith, city and breaking news, and business. He works as well as a freelance writer for several national publications and as a consultant in communications and media relations/training. Mario was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list)
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