Third quarter 2017 GDP data from StatsCan
- Prior was +4.5% q/q annualized (revised to +4.3%)
- September GDP +0.2% m/m vs +0.1% expected
- August GDP was -0.1%
- GDP +3.3% y/y vs +3.3% expected
The headline was a bit strong but it's mitigated by the softer revision. On net, it's very close to estimates, as the +3.3% y/y reading shows.
Details:
- Household consumption increased at a +4% annualized pace compared to less than 3% expected. Q2 was also revised higher to 5%
This will be seen as hawkish by the Bank of Canada because it shows that interest rate hikes didn't bite the consumer as much as feared. However, more real-time data, like the latest retail sales report released last week, was very weak so they will still have questions.
- Exports -10.2% annualized
- Exports dragged grow 3.4 percentage points lower
- Compensation +1.3% nominally (nearly 5% annualized)
- Government investment added 0.5 pp to growth
- Inventories added 1.0 pp to growth
- Business investment +3.7% annualized
- Residential investment -1.4% annualized
