Canadian economy grew 0.8% in October, StatCan says
Plastics and rubber products making contributed the most to the manufacturing sector growth, partly due to higher demand from motor vehicle and motor vehicle parts manufacturers.
Helped by gains in plastics product manufacturing, the Canadian economy kept up its streak of monthly gains in October 2021 and appears to have done so again in November, according to new figures from Statistics Canada, which has left total economic activity at nearly the same point it was at before the COVID-19 pandemic hit.
Real gross domestic product (GDP) rose 0.8% in October, StatCan said, following a 0.2% growth in September, as broad-based increases across sectors contributed to the fifth consecutive monthly expansion. Both goods-producing (+1.6%) and services-producing (+0.6%) industries were up, with 17 of 20 industrial sectors posting gains in October.
“Advance information indicates that real GDP increased 0.3% in November,” StatCan said. “Leading the growth were accommodation and food services, wholesale trade, construction and the arts and entertainment sectors, while the mining, quarrying, and oil and gas extraction sector offset some of the gains.”
The manufacturing sector rebounded 1.8% in October, meanwhile, more than offsetting a 1.5% contraction in September, with both durable and non-durable goods manufacturing contributing to the growth. Plastics and rubber products manufacturing (+5.8%) contributed the most to the growth, partly due to higher demand from motor vehicle and motor vehicle parts manufacturers, StatCan said.
Construction rose 1.6% in October, StatCan said, following four declines in the previous five months, as all forms of construction activity were up in the month; and transportation and warehousing services increased 1.6% in October as 7 of 10 subsectors were up.