Canada GDP advances 0.3% in November, wholesale biggest contributor

Staff writer ▼ | January 29, 2016

Canada's economy grew in November for the first time in three months. GDP rose 0.3% from a month earlier to 1.65 trillion Canadian dollars ($1.17 trillion), Statistics Canada said.

Growth Financial services in Canada declined 0.3%

The drop in commodity prices has hurt capital investment and hit business sentiment. The Bank of Canada said in its last rate-decision statement on January 20 that growth "stalled" in the fourth quarter, calling the renewed downdraft in commodity prices a setback for the economy.

Statistics Canada said the wholesale sector was the biggest contributor to Canadian growth in November. It rose 1.3% after four consecutive months of decline. Retail trade advanced 1.2% on a notable gain at auto dealerships and grocery stores.

The manufacturing sector, which policy makers say should benefit from a weaker Canadian currency and firming U.S. demand, rose 0.4% in November after two straight declines, led by the production of durable goods.

Oil-and-gas extraction also made a positive contribution to output in the month, as it recorded a 2.1% gain.

Weighing on economic output was financial services, which declined 0.3% in November. ■