Canadian GDP data for the third quarter
- Prior was -1.1%
- Q/Q GDP +1.3% vs -0.3% prior (revised to -0.8%)
- October GDP +0.8% vs +0.1% expected
- September GDP was up 0.4%
- Full report
Consumer spending roared in the quarter while inventories trimmed 0.74 pp from GDP. I suspect that will be unwinding in the quarters ahead as companies re-stock following the drawdown due to supply chain problems.
Fixed investment was dogged by a 5.2% drop in new construction, which is also a supply chain story.
Here's an ominous sign:
Remarkable accumulation of residential mortgage liabilities in the previous quarter continued, with households adding $38 billion in the third quarter, more than double that of two years earlier.
A good sign though is that the household savings rate remains extremely elevated, at 11.0% compared to 14.0% in Q2. It's the sixth consecutive quarter with a double-digit savings rate.
