Canadian GDP unexpectedly gains 0.1% in November

Statistics Canada announced a 0.1% growth in Canadian GDP monthly report for November on Friday. With central Canada struck by an unforeseen cold snap, the use of utility was recorded higher in the period that contributed to unexpected growth in the Canadian economy.

In the previous month’s (October) report, the gross domestic product was seen at 0.1% lower. Analysts had anticipated no change in the Canadian economy in November’s report. With both the manufacturing and services sectors noting 0.1% growth, November’s report rendered strength to the Canadian dollar in the forex market that saw loonie (USD/CAD) currency pair dropping to around 1.3215 from 1.3243.

15 Out Of 20 Industrial Sectors Posted Gains In November

In a total of 20 industrial sectors, Statistics Canada revealed 15 to have posted an increase in November. Despite the recent economic data hinting at the need for monetary stimulus for the economy to further pick up, the Bank of Canada decided in favor of keeping rates unchanged last week. While many of Canada’s counterparts have opted for monetary policy leniency, Canada has refrained from a similar strategy in over a year. BoC’s statement last week, however, hinted that a rate cut may be expected in the upcoming months.

The central bank had estimated 1.3% for Q4 annualized growth in October. In its January meeting, however, the forecast was curtailed to 0.3%. Policymakers further added that the inputs from the housing market, consumer spending, and business investment are likely to direct the BoC’s strategy further into the year 2020.

According to Statistics Canada, unexpectedly cold weather saw a 2.1% increase in utilities that was branded as the sharpest jump in over a year. An increase in the monthly GDP report was surprising for the traders and analysts alike since the Canadian National Railway strike that spanned over eight days had translated into notable losses for mining, transportation, oil and gas extraction, and warehouse sectors.

Retail Trade Climbed 0.5% In November

While the retail trade had posted a 1.1% decline in October’s report, November pushed it back up by 0.5%. Results from Black Friday sales were mixed but a 2.4% increase in parts dealers and motor vehicle, in general, was reported in November. A 1.5% growth in electronic and appliance stores was offset by a 1.5% drop in clothing and accessories stores. Music stores, hobby, sporting goods were down by 1.9%.

In separate news on Friday, Statistics Canada also announced a 0.1% increase in Canadian producer prices in December.