Canada November GDP +0.1% m/m vs +0.1% expected

• Statistics Canada estimated the November report was ‘essentially unchanged’ in last month’s report
• Prior was +0.1%
• Goods -0.1% vs -0.7% prior
• Services +0.2% vs +0.3% prior
• 14 of 20 industrial sectors increased
• Advanced December GDP “essentially unchanged”
• Advance Dec GDP implies +0.4% q/q growth and +3.8% y/y growth
• Full report

Growth has nearly stalled in Canada and the Bank of Canada expects it to be flat in H1 before picking up in the second half of the year. The 3.8% yearly growth compares to 2.1% in the US but the strength is due to a later reopening from covid controls. In 2021, Canada grew 4.6% compared to 5.9% in the US.

The Canadian dollar is higher after this report but that’s because it was released at the same time as a benign US wage report and the US dollar is broadly softer. USD/CAD was last at 1.3424.