Canada's GDP grows 1.0% in Q3
2010-12-01 14:40:05
Statistics Canada announced Tuesday that real GDP grew 1.0 percent at an annualized rate in the third quarter after expanding 2.3 percent in the previous quarter, weaker than the analysts' expectation of 1.5 percent growth.
Lower exports and investment in housing restrained GDP growth, according to the release.
However, business investment in plant and equipment recorded its strongest quarterly increase so far this year, as investment in machinery and equipment expanded 6.5 percent in the third quarter. An increase in consumer spending also contributed to the growth in final domestic demand.
Manufacturing, mining and the public sector were the main sources of growth in the third quarter, Statistics Canada said. The increase in manufacturing was concentrated in the production of durable goods, while the strength in mining was attributable largely to higher activity at copper, nickel, lead and zinc mines.
On a monthly basis, real GDP by industry declined 0.1 percent in September.
The weaker than expected growth has made the economists to speculate that the Bank of Canada will forgo an interest rate hike in its scheduled meeting next week.
The central bank increased borrowing costs three times between June and September, but has since held rates steady at 1 percent.