Canada’s GDP Stronger Than Expected In October .. Before Oil Prices Collapsed.
OTTAWA — Canada’s gross domestic product rose by an unexpectedly strong 0.3 per cent in October, which led several economists to consider revising their estimates for the final quarter of 2014 — although they also warned that they’re less bullish about 2015 due to a drop in commodity prices, especially for oil.
Statistics Canada’s monthly GDP report showed that October’s growth was broad-based, affecting several major sectors of the economy — especially oil and gas extraction, mining and manufacturing. That was partly offset by weakness in agriculture and forestry sector and utilities.
Economists had estimated the Canadian economy would grow by 0.1 per cent during the month, following September’s growth of 0.4 per cent.
CIBC economist Avery Shenfeld wrote that a 0.7 per cent gain in manufacturing was an unexpected contributor and suggested that Canada’s economic growth in the final quarter of 2014 could be better than expected.
“While we don’t see the resource strength lasting into the new year, for now, there’s room for the economy to eclipse our 2.5 per cent Q4 forecast,” Shenfeld wrote in a brief note.
