FILE PHOTO: The moon rises behind the skyline and financial district in Toronto, November 25, 2015. REUTERS/Mark Blinch/File Photo
December 23, 2019
OTTAWA (Reuters) – Canada’s economy unexpectedly shrank by 0.1% in October, the first monthly decline since February, partly because of a U.S. auto strike that hit manufacturing, Statistics Canada data indicated on Monday.
Analysts in a Reuters poll had forecast a gain of 0.1% following a 0.1% advance in September. Goods-producing industries posted a 0.5% loss while service sectors were essentially unchanged.
October’s growth figures were the latest in a string of disappointing data that analysts say may prompt the Bank of Canada to mull a rate cut. The central bank has held its key rate unchanged since October 2018 even as several of its counterparts, including the U.S. Federal Reserve, have eased.
The manufacturing sector contracted by 1.4%, the fourth decline in five months. Durable manufacturing dropped by 2.3% as a strike by the United Auto Workers prompted some Canadian plants and parts producers to scale back production.
Retail trade fell by 1.1%, the largest decline since March 2016, on broad-based weakness. Transportation and warehousing rose by 0.6% on strength in the aviation sector, both in passengers and cargo.
(Reporting by David Ljunggren; Editing by Dale Smith and Andrew Heavens)
