Winnipeg Free Press - PRINT EDITION

Fourth straight month of growth for nation's economy

  • Print

OTTAWA -- The economy grew by 0.3 per cent in October, the fourth consecutive month-to-month increase, with the battered manufacturing sector and service industries making significant gains.

The results came in ahead of expectations for a gain of 0.2 per cent in October, compared with September's increase of 0.3 per cent.

TD economist Francis Fong says the performance starts the fourth quarter off at an annualized rate of 2.7 per cent, the highest since May 2012 and above the Bank of Canada's latest estimates.

The central bank estimated in October the national economy will grow by an annualized rate of two per cent in the fourth quarter, resulting in a 1.6 per cent annual increase for all of 2013.

"For the Bank of Canada, a positive surprise for Q4 growth would be a welcomed holiday gift, but one that is unlikely to change their position on monetary policy," Fong wrote in a commentary.

"With inflationary pressures decidedly muted, we see little reason for the bank to move off the sidelines until 2015."

Statistics Canada said output from goods-producing industries was up 0.4 per cent in October. Several sectors were essentially flat or down slightly, but manufacturing rose sharply.

Manufacturing output increased by 1.3 per cent in October, after rising 1.2 per cent in September. Output of non-durable goods such as chemicals, food and beverage and tobacco products was up 2.3 per cent while output of durable goods was up 0.5 per cent.

Output from service industries was up 0.3 per cent, with almost all the major industrial sectors showing growth. Wholesale trade was up 1.4 per cent while retail trade increased 0.3 per cent, a decline in some big-ticket sectors offset growth elsewhere.

"There were notable gains at food and beverage stores, electronics and appliance stores and health and personal care stores," Statistics Canada said.

"In contrast, retailing activity was down at motor vehicles and parts dealers and, to a lesser extent, at furniture and home furnishings stores."

BMO economist Sal Guatieri wrote the economy appears to be on a faster growth path in October than the Bank of Canada expected, although his estimate of annualized growth was 2.6 per cent.

"The upturn in manufacturing after two years of lethargy suggests exports have turned up in response to a weaker dollar and stronger U.S. demand," Guatieri wrote.

"The auto industry posted back-to-back monthly gains in excess of two per cent. Service industries also showed broad strength, while wholesale trade sprinted 1.4 per cent."

He noted construction, which is little changed in the past three months due to steadier homebuilding, was one area of weakness.

 

-- The Canadian Press

Republished from the Winnipeg Free Press print edition December 24, 2013 B11

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Weekend springtime weather with Doug Speirs - Apr 19

View more like this

Photo Store Gallery

  • PHIL.HOSSACK@FREEPRESS.MB.CA Winnipeg Free Press 090528 STAND UP...(Weather) One to oversee the pecking order, a pack of pelican's fishes the eddies under the Red River control structure at Lockport Thursday morning......
  • Challenges of Life- Goose Goslings jump over railway tracks to catch up to their parents at the Canadian Pacific Railway terminalon Keewatin St in Winnipeg Thursday morning. The young goslings seem to normally hatch in the truck yard a few weeks before others in town- Standup photo- ( Day 4 of Bryksa’s 30 day goose project) - Apr 30, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you agree with the suspensions levied against three bantam hockey players for abusing game officials?

View Results

Ads by Google