Canadian economy grew 0.3% in October, lifted by manufacturing, oil and gas extraction

The Canadian economy grew 0.3 per cent in October, Statistics Canada said in its monthly GDP release, helped by strength in the mining, quarrying, and oil and gas extraction sector, following a 0.2 per cent increase in September.

The agency says the growth came as services-producing industries grew 0.1 per cent for the month. After four consecutive monthly declines, goods-producing industries rose 0.9 per cent.

Mining, quarrying, and oil and gas extraction rose 2.4 per cent in October with all three subsectors rising. Manufacturing rose 0.3 per cent in the month, following four consecutive monthly declines.

Real estate and rental and leasing increased 0.5 per cent, recording its sixth straight monthly increase and the largest since January.

“Canada’s economy is picking up steam as we wrap up the year, and we’re expecting growth in the fourth quarter close to two per cent,” wrote Andrew DiCapua, a senior economist at the Canadian Chamber of Commerce, in a note to clients.

DiCapua noted that manufacturing rebounded in October, while oil and gas exports rose ahead of potential tariffs levied against Canada by the incoming U.S. administration.

“If this momentum holds, it could influence the Bank of Canada’s January decision — possibly slowing the pace of rate cuts in the new year,” DiCapua wrote.

“That said, we remain pessimistic about the challenges ahead, with tariffs, reduced immigration targets and increased uncertainty clouding the outlook for businesses.”

Statistics Canada’s early estimate for November suggests real GDP for the month edged 0.1 per cent lower, as decreases in mining, quarrying, and oil and gas extraction, transportation and warehousing, and finance and insurance were partially offset by increases in accommodation and food services and real estate and rental and leasing.