Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Canada: Real GDP Shrank 0.1% In August

By The National Bank of CanadaMarket OverviewNov 06, 2012 07:18AM ET
www.investing.com/analysis/canada:-real-gdp-shrank-0.1-in-august-142511
Canada: Real GDP Shrank 0.1% In August
By The National Bank of Canada   |  Nov 06, 2012 07:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
Canada – In August, real GDP shrank 0.1%. Weakness was relatively broad based with only eight of the 19 sectors showing gains–the worst such ratio since the last recession. Goods production fell sharply (-0.5%) after increasing 0.2% the month before. Among the goodsproducing sectors, utilities (-0.8%), mining and oil and gas extraction (-0.7%) and manufacturing (-0.6%) were the worst performers.

Temporary shutdowns contributed to the weakness in mining. Agriculture (+0.7%) provided some offset. Industrial production contracted 0.7% after swelling 0.3% the previous month. Durable goods manufacturing decreased (-1.3%) while production of nondurable goods (+0.3%) rose in the month. Among the service-producing sectors, wholesale trade (+1.0%) was the top performer while retail trade lagged behind (-0.5%). Overall, the service sector was flat in the month.
Contribution to change in August GDP
Contribution to change in August GDP

Based on the first two months of data, GDP growth is tracking at an annualized 0.6% in 2012Q3. September’s reading needs to be strong if GDP is to top the BoC’s October MPR projection of 1.0% for the quarter.

The Canadian job report was weaker than expected in October with a gain of only 1.8K. This comes on the heels of a 52.1K surge the previous month. Full-time jobs were up 7.3K while part-time jobs decreased 5.5K. Employment in the goods-producing sector was down 19.3K following a large gain in September (34.5K). Within this sector, construction was the top performer (+3.5K) while agriculture brought up the rear (-12.7K).

The service producing sector posted a gain of 21.0K after advancing 17.6K the month before. In this sector, educational services (+16.2K) were the top performer while accommodation and food services (-17.1K) were the worst. Five provinces saw employment progress. Quebec recorded the largest gain (+20.1K) while British Columbia (-10.9K) and Ontario (-9.9K) were at the back of the pack. The national unemployment rate remained unchanged at 7.4%.
Canadian job report weaker than expected
Canadian job report weaker than expected

Private-sector employment registered a fourth decline in six months (-21k). Looking forward, with TSX-listed corporate earnings down 30% so far in Q3, we do not expect a hiring spree in the private sector anytime soon. Instead, labour market conditions are likely to remain difficult in the coming months.

To Read the Entire Report Please Click on the pdf File Below.
Canada: Real GDP Shrank 0.1% In August
 

Related Articles

Marc Chandler
FOMC: Words Not Actions By Marc Chandler - Jun 14, 2021 1

The Federal Reserve's Open Market Committee meeting is the most important event in the week ahead. It is not that it will take fresh policy action. Rather, its observations about...

Chris Markoch
How To Profit From Value Investing By Chris Markoch  - Jun 14, 2021

Simply put, value investing is an investment strategy in which investors look to buy stocks that are on sale. However, that is an oversimplification. Value investors are looking...

Canada: Real GDP Shrank 0.1% In August

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email