August GDP dented by weakness in goodsproducing sector
July growth downwardly revised to 0.1 from 0.2
Growth likely to hit 0.3 in September, Q3 seen up 1
OTTAWA, Oct 31 Reuters Canada39;s economy is likely to miss the Bank of Canada39;s revised thirdquarter forecast after a slew of temporary factors stalled gross domestic product growth in August, data showed on Thursday, at a time when business output was already anemic.
Economic growth for July also was revised downwards to 0.1 from 0.2, Statistics Canada said, and added that preliminary data showed growth is likely to have rebounded to 0.3 in September.
All this together translates to a 1.0 annualized growth in the third quarter, lower than the Canadian central bank39;s estimate of 1.5, a forecast that had already been revised down earlier this month.
Statscan39;s quarterly GDP figures are based on Canada39;s industrial output, while the thirdquarter figure, which is due to be released next month, will be based on a calculation of income and expenditure.
The flat GDP reading for August matched the median forecast of analysts polled by Reuters.
Canada39;s economic growth has slowed under the weight of high borrowing costs, which have throttled business investments and output and consumer demand.
Goodsproducing industries contracted by 0.4 in August, reaching their lowest level since December 2021, Statscan said, with the manufacturing sector declining by 1.2 and contributing the most to GDP for that month….