Canadian Economy GDP contracted by 0.1% month-on-month in November 2024, marking the first decline in 11 months. This downturn was driven by lower output in key sectors such as extractive industries, transportation and warehousing, and financial services. However, growth in accommodation and food services, as well as real estate and rental leasing, provided some offset to the overall contraction, according to a flash estimate.

Strong Performance in October

In contrast to the November decline, Canada’s GDP expanded by 0.3% in October, revised higher from the initial flash estimate of 0.1%. This marked an improvement from the upwardly revised 0.2% increase in September. The growth in October was primarily supported by mining, quarrying, and oil and gas extraction, which saw a 2.4% rise driven by higher extraction activity in oil sands and increased output for natural gas, copper, nickel, and lead. Manufacturing also posted modest gains, growing by 0.3%, with a significant 2.1% increase in the production of non-durable goods.

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Services Sector Growth and Declines

The services sector in Canadian Economy expanded by 0.1% in October, with growth in wholesale trade (0.5%) and real estate leasing (0.5%) partially offsetting declines in professional and scientific services (-0.2%). While services provided some stability, the mixed performance across various industries suggests that the Canadian economy faces challenges, particularly in its service-oriented sectors.

Outlook for the Canadian Economy

Looking ahead, the contraction in November signals a potential slowdown in Canada’s economic momentum as the year ends. The mix of declining output in key industries and the ongoing volatility in global markets will likely influence growth in the coming months. However, the steady performance in sectors like manufacturing and real estate could help stabilize the economy as Canada navigates these challenges.

Source: https://tradingeconomics.com/canada/monthly-gdp-mom