GDP stalls in October vs. 0.2% expansion expected

• Canadian economy stalled in October for the third consecutive month.
• USD/CAD stays around 1.3270 after economic data from the US and Canada.

Statistics Canada reported on Friday that Real Gross Domestic Product (GDP) “was essentially unchanged for a third consecutive month in October. Services-producing industries edged up 0.1%, while goods-producing industries were essentially unchanged, with the 20 industrial sectors evenly split between increases and decreases.”

The reading came in below the market expectations of a 0.2% expansion. In September, the economy also stalled (revised from a 0.1% expansion). 

The advance estimate indicates that real GDP edged up 0.1% in November 2023. The following GDP report will be released on January 31. 

Market reaction

The USD/CAD remained around 1.3270 after the release of the Canadian GDP and US economic data that included the Core Personal Consumption Expenditure (Core PCE) and Durable Goods Orders.