This country's gross domestic product grew faster than economists forecast in October on gains in the public sector and commodity production.
Statistics Canada figures released this morning report output rose 0.3% to an annualized $1.65-trillion after a September gain of 0.4%. The median forecast in a Bloomberg economist survey with 18 responses was for GDP growth of 0.1%. The highest forecast was 0.2%.
Public-sector output rose 0.8% in October, making it the largest contributor to GDP growth. The gain was led by 2.6% growth in educational services, primarily due to the resolution of a labour dispute with British Columbia teachers.
Oil and gas extraction rose 1.5%, the agency said. A decline in drilling led a 1.6% fall in support services for mining, oil and gas companies.
But experts say 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. Even with other manufacturers aided by a weaker currency and a gathering expansion in the U.S., Bank of Canada Governor Stephen Poloz has said cheaper crude may slow 2015 growth by a third of a percentage point.
The agency also said manufacturing expanded 0.7% in October led by petroleum, coal, chemicals and plastics. Mining and quarrying grew by 1.5%.
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