Canadian Q3 GDP Edges Higher As Consumer Spending Rises

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Canada's real gross domestic product (GDP) increased 0.1% in the third quarter, the first quarterly gain since the third quarter of 2008, according to data released Monday by Statistics Canada.

Real GDP was up 0.4% in September, as most major industrial sectors increased their production.

The Canadian economy expanded at an annualized rate of 0.4% in the third quarter, compared with a 2.8% increase for the US economy.

Final domestic demand was bolstered by a second consecutive quarterly gain in personal expenditures and the first expansion in business capital expenditure since the fourth quarter of 2007.

Export and import volumes both increased after many quarters of decline.

The agency noted that consumer spending on goods and services rose 0.8%, the biggest increase since the fourth quarter of 2007. Households increased their spending on durable goods (+2.4%), particularly on new and used motor vehicles and on furniture. Purchases of services advanced 0.7%, similar to the previous quarter.

(Market News Provided by RTTNews)