Canada’s Economy Records Surprise 0.1% Drop in November on Energy Declines

[marmar]

(Bloomberg) Canada’s gross domestic product posted an unanticipated decline in November, shrinking for the first time in six months on maintenance shutdowns by crude oil producers and lower natural gas extraction.

Output fell 0.1 percent to an annualized C$1.27 trillion ($1.27 trillion) after being little changed in October, Statistics Canada said today in Ottawa. Economists in a Bloomberg survey forecast the economy would grow 0.2 percent, based on the median of 23 responses.

The report suggests fourth-quarter growth will fall short of the 2 percent annualized pace the Bank of Canada estimated last month, with BMO Capital Markets today cutting its projection to 1.5 percent. Bank of Canada Governor Mark Carney and Finance Minister Jim Flaherty have said growth will be modest this year as weak global demand curbs exports.

The report “shows how the economy is vulnerable to even minor hits,” said Doug Porter, deputy chief economist with Bank of Montreal’s capital markets unit in Toronto. .....................(more)

The complete piece is at: http://www.bloomberg.com/news/2012-01-31/canada-s-economy-records-surprise-0-1-drop-in-november-on-energy-declines.html