Canada's GDP Expands 0.9% in Q3

Canada's real gross domestic product (GDP) advanced 0.9% in the third quarter, after declining 0.1% in the second quarter. Increased demand for exports led third quarter GDP growth. On a monthly basis, real GDP by industry increased 0.2% in September, Statistics Canada 11/30/2011 1:35:32 PM

Consumer spending on goods and services rose 0.3% in the third quarter, slightly below its second quarter gain of 0.5%.

Government expenditures on goods and services grew 0.2%, similar to the previous quarter (+0.3%).

Housing investment strengthened to 2.6%, well above the second quarter pace of 0.4%. This was the strongest growth since the first quarter of 2010.

However, business investment in plant and equipment fell 0.9%, the first quarterly decline since 2009.

Final domestic demand has been slowing throughout 2011 compared with 2010. On average, it has recorded quarterly growth of 0.5% since the start of the year. This was down from the average quarterly growth of 1.1% over the same period of 2010.

Both the goods-producing industries (+1.4%) and the service industries (+0.6%) grew in the third quarter. The energy sector led the way and notable increases were also seen in manufacturing, construction, wholesale trade and the transportation and warehousing sector.

The energy sector increased 2.6% in the third quarter, as crude oil extraction more than recovered from a period of maintenance activities and production difficulties at some oil fields. Manufacturing output rose 0.9%, mostly on increased production of transportation equipment, machinery and chemicals. There were widespread gains in wholesale trade (+1.4%). The transportation and warehousing sector grew 1.3%, partly as a result of the end of labour disputes in postal services.