Economy grew 0.8% in October, sees gain in November, Statistics Canada says

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Statistics Canada says real gross domestic product increased by 0.8 per cent in October.

The showing matched the agency’s preliminary estimate released last month, as well as analysts’ expectations.

Gains for the month were seen across most sectors, including manufacturing, whose rebound of 1.8 per cent in October more than offset a September contraction.

Driving that sector was output related to auto manufacturing, despite what the statistics office notes is an ongoing shortage of semiconductor chips, among other supply-chain issues hampering consistent production.

Also helping in October were gains in retail trade, construction and home resale activity. The arts and entertainment sector was also up in October, helped by larger capacity limits for audiences.

Statistics Canada says total economic activity in October was 0.4 per cent below pre-pandemic levels recorded in February 2020.

Economic activity nearly at pre-pandemic level

The economy appears to have inched closer to closing that gap, as Statistics Canada says preliminary data for November suggests a rise in GDP of 0.3 per cent for the month.

With Thursday’s preliminary estimate, Statistics Canada says total economic activity in November was 0.1 per cent below pre-pandemic levels recorded in February 2020.

Another gain in November would mark six straight months of economic expansion. Statistics Canada will finalize November’s figures in early February.

CIBC senior economist Andrew Grantham says even after accounting for the possibility of a modest pullback in December, GDP is still running modestly ahead of the Bank of Canada’s forecast of economic growth in the quarter, at an annual rate of four per cent.

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