Canada’s gross domestic product expanded by 0.1 per cent in October, as growth in the service sector was barely enough to offset shrinkage in goods-producing industries.
Statistics Canada reported Friday that the GDP figure for October was a slowdown from 0.2 per cent growth seen the previous month. And early numbers for November suggest no growth at all.
The service sector has grown for six months in a row while the goods sector has contracted for four months in a row, the data agency said.
The service sector got a boost from some unexpected places during the month with the performing arts, spectator sports and related industries increasing by 4.7 per cent during the month.
Blue Jays and NHL games boosted the economy a little
That was largely due to the Toronto Blue Jays, who had five more games than usual during the month — three makeup games for ones cancelled during the regular season, and a two-game playoff.
It wasn’t just baseball. “A late start to the National Hockey League pre-season in September contributed to a higher-than-usual increase in attendance in October,” the data agency said.
While the 0.1 per cent growth in overall economic growth in October was in line with what economists were expecting, the numbers painted a picture of an economy showing clear signs of slowing down.
“The Canadian economy has been holding up relatively well overall heading into the end of 2022, largely because the service sector is now carrying the weight,” Bank of Montreal economist Robert Kavcic said. “But the real question will be how things shake out during the first half of next year, when aggressive Bank of Canada rate hikes start to more fully work their way through the system.”