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Falling oil prices brought Canada's GDP lower in November 2014: StatsCan

Published by Brad Fougere on January 30, 2015

The Canadian economy began to feel the impact of falling oil prices in November. After strong performances in September and October, national GDP fell by 0.2 per cent – its largest single-month decline in almost a year.

November’s decline was largely the result of sharply lower activity in mining and oil and gas extraction and in manufacturing output linked to the energy sector. GDP in resource extraction fell by 1.5 per cent, led by a 3.0 per cent drop in oil sands activity. For its part, GDP in manufacturing fell by 1.8 per cent that month.

The decline in manufacturing GDP in November was driven by industry sub-sectors that have strong linkages into the energy sector. GDP in chemicals manufacturing fell by 5.8 per cent while output in machinery (-3.4 per cent), fabricated metals (-3.0 per cent) and primary metals (-1.8 per cent) also fell sharply.

The one bright spot in manufacturing GDP in November was in paper products manufacturing where value-added output increased by 1.5 per cent. GDP was flat in most other major manufacturing sub-sectors that month, including food, wood products, petroleum refining and motor vehicles.

However, even with November’s decline, the manufacturing sector is still delivering a relatively strong performance in 2014. With one month’s data left to come, manufacturing GDP growth has averaged 2.9 per cent through 2014, compared to 2.7 per cent growth for the Canadian economy as a whole. Leading the way throughout the year have been aerospace and motor vehicles producers.

Through 11 months, GDP in those industries is up 7.9 per cent and 7.0 per cent, respectively, compared to the same period in 2013.

Found in: Stats Canada

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