Goods-producing industries such as wholesale trade and manufacturing contributed significantly to the economy’s improved November performance, while the education services sector contracted.
Industrial production ticked upwards by 0.8%, with a 0.9% jump in the national manufacturing output bolstered by recovery in chemical and metal subsectors.
What’s next for the Canadian economy?
The news marks the first time Canada’s economy has grown in six months – but is unlikely to change the Bank of Canada’s thinking on a timeline for possible rate cuts.
The Bank of Canada has left its policy rate unchanged in its first announcement of the year.
— Canadian Mortgage Professional Magazine (@CMPmagazine) January 24, 2024
Royal Bank of Canada (RBC) economist Claire Fan said in a note that the economy’s faster pace towards the end of the year should be taken “with a grain of salt” as early GDP estimates can often be prone to revision.
Much of the economy’s perceived strength in November, she added, could be attributed to one-off factors including recoveries from strike action and factory shutdowns “that are unlikely to be repeated in the following months.”