After three months of zero or near-zero growth, Canada’s GDP expanded 0.3 per cent in November, above analysts’ expectations and up 1.3 per cent from the same period last year, Statistics Canada said today.
Most of the growth came from the goods-producing industry, which collectively climbed 0.6 per cent, up from 0.2 per cent in October.
Oil and gas extraction, in particular, was up a healthy 0.8 per cent due to renewed activity after several maintenance-related shutdowns in October.
The service sector was stagnant for the fourth consecutive month, edging up a mere 0.1 per cent. Gains in wholesale and retail trade were offset by weakness in the accommodation and food services industry and the financial sector.
Real estate-related services were up 0.2 per cent.
What the analysts are saying:
The economy seems to have gained momentum towards the end of the year, although GDP growth for 2012 will still be beneath potential, wrote CIBC’s Emanuella Enenajor.
TD’s Jonathan Bendiner predicts fourth-quarter growth of one per cent and a sluggish start to 2013, with growth bogged down by uncertainty over U.S. fiscal policy and the current spread between Canadian crude and world oil prices possibly weighing on investment in the oil sands.