Canada third quarter growth data:
- Prior was +3.7% (revised to +3.5%)
- September GDP +0.1% vs +0.1% expected
- August GDP was +0.1%
- Sept y/y GDP +1.6% vs +1.4% expected
- August y/y GDP was +1.3% (revised to +1.5%)
Details:
- Residential investment +13.3% (fastest since 2012)
- Household consumption +1.6% vs +0.5% prior
- Business investment +2.6% -- fastest since Q4 2017
- Non-residential business investment +9.5%
- Overall domestic demand +3.2%
- Inventories -8.55% vs -7.88% in Q2
The Bank of Canada forecast a 1.3% pace of growth in Q3 so this shouldn't jar them in either direction.
Beneath the surface, this report is better than it looks. Inventories cut 1.62 percentage points from growth and trade took another 0.49 pp. Take those out and growth is at 3.4% on a strong consumer that's once again starting to feel good about his/her housing wealth.
This is how the makeup looks on a non-annualized basis:
