Canada: October GDP serves up more growth

Real GDP advanced by 0.1% in October, in line with our call. Services-producing sectors posted a 0.3% gain in the month. In contrast, goods-producing sectors took a step back in October, falling 0.7%. Statistics Canada’s flash estimate is for real GDP to advance by 0.1% in November, in line with our tracking.

Today’s release combined with upward historical revisions is consistent with Q4 real GDP growth tracking at roughly 1.5% annualized. This is well above the Q4 growth of 0.5% projected in the Bank of Canada’s October Monetary Policy Report. However, it’s only one indicator of many tracked by the Bank. As such, we continue to expect the Bank to settle in for a prolonged pause following its outsized rate hike in December.