Canada GDP Climbs 0.4% in November on Factory Strength
By Paul Vieira
OTTAWA--The Canadian economy rebounded in November after stalling in October, led by a manufacturing sector that recorded its best performance in nearly four years as some auto-assembly plants resumed production following a brief shutdown.
Canada's gross domestic product, or the broadest measure of goods and services produced in an economy, increased 0.4% in November from the previous month to a seasonally adjusted 1.759 trillion Canadian dollars ($1.427 trillion), Statistics Canada said Wednesday. The result matched market expectations, as provided by economists at Royal Bank of Canada, and marked the best one-month gain in economic output since May.
On a one-year basis, the Canadian economy advanced 3.5% in November.
Earlier in January, the Bank of Canada raised its benchmark interest rate by a quarter-percentage point to 1.25%, the third increase in seven months, on strength in the underlying economy. The central bank said its economic outlook is expected to "warrant higher interest rates over time," yet signaling it would remain cautious given risks tied to the fate of the North American Free Trade Agreement and concerns over the ability of highly-indebted households to adapt to higher borrowing costs.
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(END) Dow Jones Newswires
January 31, 2018 08:45 ET (13:45 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.