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Canadian economy shrank by 0.3% in Oct, biggest drop in almost 3 years
Manufacturing fell 1.5% with wood products down 7.3% and postal services collapsed 32.1% due to strikes, Statistics Canada reported a 0.3% GDP drop in October.
- On Tuesday, Statistics Canada reported real GDP contracted 0.3% in October, more than wiping out September's 0.2% expansion.
- Manufacturing weakness and strikes pushed output down, as the Canadian Union of Postal Workers' strike cut postal services by 32.1% and an Alberta teachers' strike reduced education output by 1.8%.
- Wood product manufacturing plunged 7.3%, its steepest drop since 2020, machinery manufacturing slid 6.9%, and finance and insurance rose 0.4% to a record high while 11 of 20 industrial sectors contracted.
- Earlier this month the Bank of Canada held its policy rate at 2.25%, but the October contraction complicates its narrative as Statistics Canada's November advance estimate points to a 0.1% rebound with official figures due January 30, 2026.
- Amid U.S. trade hurdles and strikes, a 0.30% October contraction matched the steepest monthly decline of the year, echoing a similar August slump.
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Canada’s Economy Shrank by 0.3 Percent in October: StatCan
Canada’s Gross Domestic Product (GDP) shrank by 0.3 percent in October due to a contraction in industries producing goods and services, according to Statistics Canada. The numbers come following the agency’s September report, which showed the GDP grew by 0.2 percent. StatCan said in its briefing that October’s numbers were due to contractions in “durable-goods and non-durable goods manufacturing industries,” with the manufacturing sector fallin…
·New York, United States
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Coverage Details
Total News Sources26
Leaning Left9Leaning Right3Center5Last UpdatedBias Distribution53% Left
Bias Distribution
- 53% of the sources lean Left
53% Left
L 53%
C 29%
R 18%
Factuality
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