Canada economic growth worst since 2013 on poor manufacturing, Q4 outlook remains cloudy

The economic growth in Canada during the month of October came in at the worst levels since 2013, owing to poor state of manufacturing in the country. This subdued data also clouded the prospects of fourth quarter gross domestic product (GDP) of the country.

Canada’s GDP fell 0.3 percent in October, data released by Statistics Canada showed Friday, below economists' expectations for no growth. Although the fourth-quarter is still tracking at around 1.5 percent, which is what the Bank of Canada expects, the underlying weakness in the economy puts that forecast at risk, Reuters reported.

The goods-producing part of the economy drove the weakness, ending a four-month run of gains and led by a 2.0 percent decline in manufacturing, the biggest drop since December 2013. Oil and gas extraction was down 2.5 percent, also pulling back after four months of gains.

Further, the U.S. crude prices declined 2.9 percent in October after a nearly 8 percent run-up in September. Construction fell 0.5 percent, the fifth decline in six months. Residential construction fell 1.0 percent as builders broke ground on fewer homes.

Meanwhile, the USD/CAD traded at 1.35, down -0.21 percent, while at 5:00GMT, the FxWirePro's Hourly Canadian Dollar Strength Index remained neutral at -39.90 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex