Canada’s economy ekes out 1% growth in third quarter

globalnews.ca:

The Canadian economy continued to grow in the third quarter as consumer spending rebounded, Statistics Canada said Friday.

On an annualized basis, real gross domestic product rose one per cent between July and September, according to StatCan. That marks a slowdown from 2.2 per cent annualized growth in the previous quarter.

The results undershot the Bank of Canada’s call for 1.5 per cent annualized growth in the third quarter.

StatCan pointed to increased consumer spending, particularly on new trucks, vans and SUVs. Spending was also higher across all levels of government in the third quarter, the agency said.

Dragging down GDP last quarter was a slower accumulation in business inventories and a drag on investment into machinery and equipment.

And while consumer spending was credited with keeping the economy afloat in the period, StatCan said that households were saving more overall. The net household savings rate rose in the third quarter as disposable income (up 2.3 per cent) rose at nearly double the rate of spending (up 1.2 per cent).

Housing investment meanwhile saw its first quarterly jump higher since a year earlier. That was thanks to a rebound in activity in the resale market, while investment in new home construction and renovations declined.

StatCan said that real GDP per capita was down 0.4 per cent in the quarter, meaning growth on a per-person basis has now declined for the sixth consecutive quarter.

On the other hand, the latest quarterly results included broad upward revisions to real GDP dating back the past two years. CIBC senior economist Andrew Grantham said in a note to clients that, all told, GDP now appears 1.4 per cent higher since the second quarter of 2022.

On a monthly basis, real GDP was up