Canada economy ekes out 0.1 percent growth in October

Fri Dec 21, 2012 8:44am EST
 

OTTAWA (Reuters) - The Canadian economy grew by just 0.1 percent in October from September, indicating a very slow start to the fourth quarter amid foreign and domestic economic woes, Statistics Canada data indicated on Friday.

The figure matched analysts' expectations. The Bank of Canada says fourth quarter growth will be 2.5 percent annualized but the October data confirm market suspicions the real figure will be much less impressive.

Overall, output rose in 12 of 18 sectors. Service industries grew by 0.1 percent on strength in wholesale and retail trade while goods production was unchanged.

Mining and oil and gas extraction advanced by 0.3 percent while support activities for the mining industry grew by 1.3 percent, reflecting higher drilling and rigging services. Canada is the single biggest exporter of energy to the United States.

Manufacturing output fell by 0.4 percent. Canadian firms are struggling to cope with weak markets in the United States and Europe as well as the challenges posed by a strong dollar.

(Reporting by David Ljunggren; Editing by Chizu Nomiyama)

 
The Canadian flag is seen on top of a flagpole in the midst of high-rise buildings in the financial district of Toronto April 3, 2009. REUTERS/Mark Blinch