Businesses Pull Back,Canada’s Economy Slows
Canadian economic growth slowed to 1.7 percent in the third quarter, coming off a hot first half of the year as exports tumbled and businesses pulled back on investment, data from Statistics Canada showed on Friday.Exports were the main drag on the economy in the third quarter, falling by 10.2 percent on an annualized basis as shipments of vehicles and parts fell amid work stoppages and changes to certain models sent to the U.S. market.
Canadian economic growth slowed to 1.7 percent in the third quarter, coming off a hot first half of the year as exports tumbled and businesses pulled back on investment, data from Statistics Canada showed on Friday.Exports were the main drag on the economy in the third quarter, falling by 10.2 percent on an annualized basis as shipments of vehicles and parts fell amid work stoppages and changes to certain models sent to the U.S. market.
Business investment in non-residential structures, machinery and equipment grew by 3.7 percent, slowing substantially from the second quarter. The Bank of Canada has said uncertainty about North American trade policy is likely dampening business confidence.The housing sector also weighed on growth, with investment in residential structures down 1.4 percent as ownership transfer costs fell, reflecting slower resale activity.
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