Canada GDP rose 0.4pc in October on finance and insurance
- Canada's real GDP rose 0.4% in October, beating analyst estimates of a 0.3% gain. Statscan said its preliminary estimate for November was also a gain of 0.4%.
- The Canadian dollar was trading 0.2% higher at 1.2879 to the greenback, or 77.65 US cents, after the data.
OTTAWA: The Canadian economy grew in both October and November, with the October gain slightly above expectations mostly on strength in the finance and insurance sector, Statistics Canada said on Wednesday.
Canada's real GDP rose 0.4% in October, beating analyst estimates of a 0.3% gain. Statscan said its preliminary estimate for November was also a gain of 0.4%. Still, economic activity remains about 4% below the pre-pandemic level.
The growth came despite increased restrictions across Canada amid a resurgence of COVID-19 infections and will likely ensure an overall gain in the fourth quarter. But economists expect a weaker December and challenges in the new year.
"The weakness we do expect in December coupled with new restrictions that have been extended into January mean that the handoff to the new year will be weak, likely leaving Q1 headed for a much softer print," said Royce Mendes, a senior economist at CIBC Capital Markets, in a note.
The Canadian dollar was trading 0.2% higher at 1.2879 to the greenback, or 77.65 US cents, after the data.
The goods-producing sector posted a 0.1% increase, while the service-producing sector grew by 0.5%.
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