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Canada’s Economy Stalls in November as StatCan Flash Points to Slight Q4 Drop

StatCan’s early track implies about a 0.5% annualized fourth‑quarter decline if the full report confirms it.

Overview

  • Real GDP registered 0.0% in November after a 0.3% decline in October, with goods-producing sectors contracting and services edging higher.
  • Manufacturing fell 1.3% as a semiconductor shortage curtailed motor-vehicle output, and durable-goods production sank to its weakest non-pandemic level since 2011.
  • Retail trade rose 1.3% in November, while services got a lift from the resolution of strikes at Canada Post, Alberta schools and B.C. liquor stores.
  • A preliminary estimate shows GDP up 0.1% in December with manufacturing and wholesale trade returning to growth.
  • The Bank of Canada kept its policy rate at 2.25% and projects flat Q4 activity with a modest 2026 recovery, while economists say the weakness is unlikely to trigger immediate rate-cut discussions.