Canada’s economy contracted in October, with real GDP falling by -0.3% mom, in line with expectations. The slowdown was broad-based, with 11 of 20 industrial sectors posting declines, highlighting ongoing softness across the economy.
Goods-producing industries were the main drag, falling -0.7% on the month as most components weakened. Manufacturing led the decline, reinforcing concerns that external demand and tighter financial conditions continue to weigh on Canada’s industrial base. Services-producing industries also slipped by -0.2%, partly reflecting labor stoppages that disrupted activity in several areas.
Looking ahead, early indications point to modest stabilization. Advance data suggest real GDP by industry rose 0.1% mom in November, supported by gains in educational services, construction, and transportation and warehousing. These were partly offset by renewed weakness in mining, quarrying, oil and gas extraction, and manufacturing.
