Economy Grows .3% in October
CBJ – More good news on the economic front on word from Statistics Canada that the nation’s gross domestic product grew faster than economists had been forecasting for the month of October.
Unexpected gains in the public sector and commodities production fueled a .3% rise to an annualized $1.65 trillion. This follows a gain of .4% in September. Most economists had predicted a .1% increase with a few saying .2%, but virtually none thought it would be as high as .3%.
Public-sector output rose .8% to lead the way. The gain was led primarily by a 2.6% increase in educational services, due in large part to the resolution of a labor dispute with British Columbia teachers.
Oil and gas extraction rose 1.5%. A decline in drilling led a 1.6 percent fall in support services for mining, oil and gas companies.
The October gain may not be sustained with energy companies in recent weeks announcing reduced investment in response to the global plunge in prices for crude oil, Canada’s top export. Bank of Canada Governor Stephen Poloz has said cheaper crude may slow 2015 growth by a third of a percentage point.
Manufacturing expanded 0.7% in October led by petroleum, coal, chemicals and plastics. Mining and quarrying grew by 1.5%.