Latest GDP numbers show Canada’s economy is still growing, but signs of slowdown are everywhere | 24CA News

Canada’s economic system expanded barely in September, with the nation’s gross home product rising by 0.7 per cent in the course of the third quarter.

Statistics Canada reported Tuesday that exports in items producing industries led the way in which in the course of the quarter, offsetting service sector output that was basically flat.

Oil and fuel extraction grew by 1.8 per cent in September, led by a surge in oilsands extraction. The nation set a high-water mark for crude bitumen manufacturing in the course of the month, forward of the record-setting output seen in July and August.

Agricultural manufacturing additionally boomed in the course of the month, as crop manufacturing grew by 0.7 per cent. Canadian farms have now seen output develop for 12 months in a row after plunging on account of drought situations in Western Canada final 12 months.

“Increased production was largely driven by better growing conditions, leading to higher-than-expected yields,” the info company stated.

Spending slowdown

On the alternative finish of the ledger, the manufacturing sector shrank by 0.1 per cent, as did retail and wholesale commerce.

Household spending declined by 0.3 per cent, the primary decline because the second quarter of 2021. Consumer spending declined as a result of “instead of spending, households continued to save their money for a rainy day,” economist Royce Mendes with Desjardins stated. 

The family financial savings price elevated to five.7 per cent from 5.1 per cent beforehand. For comparability functions, previous to the pandemic, in 2019, the family financial savings price was 2.5 per cent.

“It looks like Canadians are readying themselves for what could be a rough ride for the economy in 2023,” Mendes stated.

Households have been socking away as a lot as they may in the course of the quarter partly as a result of the wage good points seen earlier within the pandemic are beginning to sluggish. 

On a quarterly foundation, nominal compensation for workers rose 1.2 per cent.

“This was the lowest growth in wages and salaries since the second quarter of 2020, when compensation declined sharply,” the info company stated.

All in all, Mendes says the GDP numbers “suggest that economic momentum was stalling entering the fourth quarter.”