- Q2 growth was 1.8% (revised to 1.7%)
- Lowest reading since Q2 2011
- Sept GDP flat vs +0.1% exp
Exports were soft (down 2%) and business investment was slow (first decline in 3 years).
The drop in business investment is especially troubling. In the US, the assumption is that investment has fallen because of worries about the fiscal cliff. In Canada, there is no fiscal cliff so it might be global macro softness that is behind weak investment.
You could also argue that Canadian businesses are concerned about a slowdown in the US due to the cliff, and that’s why they’re cutting back.
