OTTAWA, Dec 23 (Reuters) – The Canadian economy shrank by a greater-than-expected 0.3% in October, the largest drop in almost \u200bthree years, on weakness in both the goods and \u200cservices sectors, official data showed on Tuesday.<\/p>\n
Analysts had forecast growth would dip by \u200c0.2% from September as the economy continues to adjust to U.S. trade measures. Statscan said initial data indicated that GDP would grow by 0.1% in November.<\/p>\n
The month-on-month fall was the largest since the \u20600.3% decline seen in \u200cDecember 2022. The goods sector fell 0.7% in October while services contracted by 0.2%.<\/p>\n
The figures are unlikely \u200dto overly concern the Bank of Canada. Governor Tiff Macklem said on December 10 that he expected GDP growth to be weak in the \u200bfourth quarter.<\/p>\n
The manufacturing sector dropped by 1.5%, partly reflecting a \u200c6.9% plunge in machinery output. Wood product manufacturing dropped by 7.3%, the largest decline since April 2020, following additional U.S. tariffs that came into force on October 14.<\/p>\n
Services-producing industries were hit by a nationwide work stoppage by Canada Post workers and a teachers’ \u2060strike in the province of Alberta.<\/p>\n
The Bank \u200bof Canada held its key policy \u200brate steady at 2.25% on December 10. Macklem, noting the economy was proving resilient overall to U.S. tariffs, \u200dsaid the rate \u2060was at the right level to keep inflation close to the bank’s 2% target.<\/p>\n
Before the GDP data were released, money \u2060markets were predicting that the Bank’s next move would be a 25 \u200cbasis point hike, most likely in July 2026.<\/p>\n
(Reporting by David \u200cLjunggren, editing by Dale Smith)<\/p>\n","protected":false},"excerpt":{"rendered":"OTTAWA, Dec 23 (Reuters) – The Canadian economy shrank by a greater-than-expected 0.3% in October, the largest drop…\n","protected":false},"author":2,"featured_media":363956,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[45,49,48,46,28928,25902],"class_list":["post-363955","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-ca","tag-canada","tag-economy","tag-manufacturing-sector","tag-tiff-macklem"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/363955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=363955"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/363955\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/363956"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=363955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=363955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=363955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}