Economy Slips 0.1% in November

CBJ — The Canadian economy weakened in November as the wholesale trade and manufacturing sectors pulled back.

Figures released by Statistics Canada indicate a 0.1% decline in the gross domestic product in November following an increase of 0.3% in October.

The Bank of Canada kept its key interest rate target on hold at its last rate announcement. In making its decision, the central bank noted that the drop in oil prices at the end of last year will weigh on the economy, but predicted that the effects of the slump will dissipate and allow growth to resume.

The overall contraction in the economy came despite gains in 13 of the 20 industrial sectors tracked.

The wholesale trade sector fell 1.1% in November as machinery, equipment and supplies wholesaling pulled back 2.1%.

The manufacturing sector also contracted 0.5% for the month, the third decline in four months.

The mining, quarrying and oil and gas extraction sector fell 0.1% as mining excluding oil and gas extraction and supporting activities were more than offset by a drop in oil and gas extraction.

Mining excluding oil and gas extraction grew 2.3%, while oil and gas extraction fell 1.6%.

Conventional oil and gas extraction fell 2.2%, while non-conventional oil extraction dropped 0.9%.