Economy Grew 0.4% in November
CBJ — Figures from Statistics Canada reveal the Canadian economy grew by 0.4% in November.
StatsCan said 17 of 20 industrial sectors posted increases for the month, with goods-producing industries up 0.8% after declining 0.5% the previous month.
“November’s gain was mainly due to increases in the manufacturing and mining, quarrying and oil and gas extraction sectors, partly as a result of restoration in production capacity,” the federal government agency reported.
The manufacturing sector was up 1.8%, marking its largest monthly increase since February 2014.
After four consecutive monthly declines, which saw motor vehicle manufacturing drop by 21.5%, the industry rose by more than 14% in November.
Services-producing industries rose 0.3%, led by the real estate and rental and leasing, wholesale, and retail trade sectors.
The Bank of Canada will look favorably on these latest figures, which may impact its decision on interest rates on March 7.
Meanwhile in the U.S., the Federal Reserve opted to keep interest rates unchanged but said it anticipated inflation would rise this year, in a sign it is still on track to raise borrowing costs in March under incoming central bank chief Jerome Powell.
Citing solid gains in employment, household spending and capital investment, the Fed said it expected the economy to expand at a moderate pace and the labour market to remain strong in 2018.