Canada GDP advances 0.3% in November, wholesale biggest contributor
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. ■