Canadian economy grows sequentially in November, likely to have expanded 2.4 pct in Q4

The Canadian economy expanded in November on sequential basis. The GDP grew 0.4 percent as the manufacturing and resources sectors rebounded after earlier setbacks. Out of 20, 17 major industries recorded rises in output, the widest base of growth since April 2017.

The goods producing side of the nation drove the growth, rising 0.8 percent sequentially. With production resuming at several major auto plants after earlier shutdowns, manufacturing surged 1.8 percent. This was the biggest monthly gain in three years, underpinned by a 14.3 percent rise in motor vehicle manufacturing. Resource extraction also rose 0.5 percent. The rise was greatly because of the oil and gas sector as production continued to rebound after earlier maintenance activities at several facilities.

The service industries remained stable performers, witnessing the 20th consecutive monthly growth. Aggregate services output was up 0.3 percent, aided by strong retail and wholesale trade figures.

“As shown by this month's breadth of growth, the underlying trend for the Canadian economy remains a positive one: economic growth of around 2.4 percent (annualized) looks likely for the fourth quarter of 2017, confirming the spate of positive economic indicators that have so far characterized the end of last year”, noted TD Economics in a research report.

At 16:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral 49.6069, while the FxWirePro's Hourly Strength Index of US Dollar was bearish at -75.5742. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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