StatCan estimates economy grew at annualized rate of 1% in Q3

By Nojoud Al Mallees, The Canadian Press on October 31, 2024.

A magnifying glass enlarges the holographic image of Parliament Hill's Peace Tower on a $20 bill issued by the Bank of Canada, shown in a display case at the Bank of Canada Museum in Ottawa, Wednesday, Sept. 4, 2024. THE CANADIAN PRESS/Justin Tang

OTTAWA – Statistics Canada says the economy was flat in August, while a preliminary estimate suggests it grew at an annualized rate of one per cent in the third quarter overall.

The agency says growth in services-producing industries in August were offset by declines in goods-producing industries.

The manufacturing sector was the largest drag on the economy, followed by utilities, wholesale and trade and transportation and warehousing.

A preliminary estimate for September suggests real gross domestic product grew by 0.3 per cent.

The Bank of Canada has described the economy as soft, largely due to high interest rates weighing on consumption and business investment.

The central bank’s interest rate cuts are expected to boost economic activity and restore stronger growth next year.

This report by The Canadian Press was first published Oct. 31, 2024