Canada's economy reportedly grew at an annual rate of 2.9 percent in the third quarter, Statistics Canada reported. The federal agency released two reports on real gross domestic product on Tuesday, detailing economic growth in September and the third quarter of the year.
Real gross domestic product in the third quarter rose 0.7 percent, beating the federal agency's initial estimate of growth of 0.4 percent. Based on the report, economic growth was led by increases in exports, non-residential structures and business investment in inventory.
The increase in exports was driven by increased exports of crude oil and bitumen, albeit at lower prices. Growth was limited due to a decline in housing investment and household spending.
Household spending fell for the first time since the second quarter of 2021, down 0.3 percent. On a quarterly basis, nominal compensation for workers increased 1.2 percent, marking the slowest growth in compensation since the second quarter of 2020.
At the same time, the household savings rate increased from 5.1 percent in the second quarter to 5.7 percent in the third quarter. For comparison, the savings rate in the third quarter of 2019 was 2.5 percent. Federal agencies note savings rates tend to be higher for those with higher incomes.
Monthly real GDP data showed the economy expanded by 0.1 percent in September, with the increase in real GDP driven by the goods-producing industry.
The US dollar weakened slightly against the Canadian currency with a limited strengthening of 0.40% to trade at 1.3553. Market focus shifts to consumer confidence data and the BoE Governor's speech.
