The agency said the output of goods-producing industries
fell 1.5 per cent — largely due to a 5.1 per cent
decline in mining, quarrying, and oil and gas
extraction, as well as a smaller (0.6 per cent) drop in
manufacturing. Utilities and the agriculture and
forestry sector increased, while construction was
unchanged.
“Oil and gas extraction fell 5.5 per cent in September,
mainly as a result of a large decrease in
non-conventional oil extraction,” said the federal
agency. “Support activities for mining and oil and gas
extraction fell 13 per cent in September, because of a
drop in both drilling and rigging services. The output
of the support activities for mining and oil and gas
extraction industry has decreased for five consecutive
quarters, down 49 per cent from September 2014 levels.”
Service-producing industries edged down 0.1 per cent in
September.
Doug Porter, chief economist with BMO Capital Markets,
said that in September the energy sector alone accounted
for 0.4 percentage points of the monthly drop in GDP.
He said the Canadian economy “is still struggling to
grow consistently at this stage of the cycle.”
“While tempting to say that the decent Q3 results mean
that phoney recession-mania has bitten the dust, it is a
tad unsettling that GDP took such a sizeable step back
in September. In effect, the quarter came in like a
raging lion and left like a feeble lamb,” said Porter.
“Still, the deep September drop was largely due to a
one-time hit which should reverse, and we still look for
growth of just below two per cent in Q4.”
Brian DePratto, economist with TD Economics, said the
Canadian economy was able to snap back to life in the
third quarter despite continued weakness in investment
in the Canadian economy.
“There is good reason to believe that the relatively
strong growth of the third quarter will not be
repeated,” he said. “Momentum appears weaker heading
into the fourth quarter, even abstracting from the noise
in the oil and gas sector, with growth currently
tracking close to 0.8 per cent. Looking into 2016 and
beyond, we continue to expect moderate growth of around
two per cent per year.
“A continued shifting of Canadian growth drivers is
anticipated, with exports taking a more leading role as
the housing market takes a breather and investment
continues to face the dual headwinds of low oil prices
and a weak loonie.”
Source:
Calgary Herald, dated 01/11/2015. |