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

Statistics Canada says pace of Canadian economic growth slowed in 3rd 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.

Just Posted

Chilliwack Spartans Swim Club coach Justin Daly.
Chilliwack Spartans swim coach Justin Daly wins Rubber Boot Award

Daly was recognized in a vote by fellow coaches in the BC Swim Coaches Association

Linnea Labbee outside the Chilliwack Law Courts on April 1, 2021 on day 16 of her trial in BC Supreme Court. Labbee was convicted April 12 for the fatal hit-and-run of 78-year-old Fourghozaman Firoozian on Dec. 1, 2016. (Paul Henderson/ Chilliwack Progress)
Sentencing hearing scheduled for 72-year-old Chilliwack woman found guilty in fatal hit-and-run

Crown will seek jail time for Linnea Labbee who struck and killed 78-year-old woman in 2016

Dr. Keith Carlson, director of Peace and Reconciliation Centre, will be the MC and moderator for the June 23 webinar Islamophobia: Seeking Solutions for Hate. (Submitted photo)
Seminar presented on Islamophobia: Seeking Solutions for Hate

UFV webinar on June 23 features speakers who will draw on lived experience

The latest data from the BC Centre for Disease Control. (BCCDC graphic)
Chilliwack COVID case count moving towards zero

From a high of 156 around Christmas, Chilliwack’s local health authority reported just 17 last week

(File)
May 2021 crime rates down from last year: Agassiz RCMP

Mounties see trend of catalytic converter thefts in Agassiz, Harrison

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Queen’s counsel Paul Doroshenko, a Vancouver lawyer, has been suspended from practice for two months after admitting that his firm mismanaged $44,353.19 in client trust funds. (Acumen Law)
High-profile B.C. lawyer suspended over $44K in mismanaged client trust funds

Queen’s counsel Paul Doroshenko admits to failing to supervise his staff and find, report the shortage

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

Ridge Meadows RCMP seized drugs, cash and guns from a house on Lougheed Highway and 221 Street. (Special to The News)
RCMP seize drugs, cash and guns from Maple Ridge house

Items were recovered after search warrant executed on Lougheed Highway home June 11

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

Fire near Highway 97 C close to Merritt. (Facebook)
Wildfire burning near Highway 97C

The fire is an estimated nine hectares in size

Athena and Venus, ready to ride. (Zoe Ducklow - Sooke News Mirror)
Goggling double-dog motorcycle sidecar brings smiles to B.C. commuters

Athena and Venus are all teeth and smiles from their Harley-Davidson sidecar

Kimberly Bussiere and other laid-off employees of Casino Nanaimo have launched a class-action lawsuit against the Great Canadian Gaming Corporation. (Chris Bush/News Bulletin)
B.C. casino workers laid off during pandemic launch class-action lawsuit

Notice of civil claim filed in Supreme Court of B.C. in Nanaimo against Great Canadian Gaming

Most Read