Canada GDP Q3 annualized +2.6% vs +0.5% expected

• Prior -1.6% (revised to -1.8%)
• GDP Q3 Q/Q +0.6% vs -0.4% prior (revised to -0.5%)
• GDP for September M/M +0.2% vs +0.2% expected
• Prior -0.3% (-0.1%)

This is a huge surprise for Canadian GDP. The BoC projected +0.5%, so this blows it out of the water. The central bank can comfortably sit back and not even thinking about cutting rates further.

StatCan said: “the rise in the third quarter was driven by a strengthening trade balance, as imports dropped and exports edged up. Increased capital investment was driven by government capital spending, as business investment was flat. Overall growth was dampened by declines in household and government final consumption expenditures as well as a slower accumulation of business inventory.”

This article was written by Giuseppe Dellamotta at investinglive.com.