MNI 5 THINGS: Canada 4Q GDP +1.7%, Slows More Than Expected>

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the December 

data on Canadian GDP by industry as well as the fourth quarter GDP by 

expenditure data released Friday by Statistics Canada: 

     - Fourth quarter real GDP rose at an annualized pace of 1.7% 

(1.714% unrounded), below analysts' expectations of a 2.0% increase 

according to a MNI survey. Growth was also weaker than the 2.5% 

projected by the Bank of Canada. 

     - GDP by industry data showed growth slowed to 0.1% in December, as 

expected by analysts, from 0.4% in November. Output of goods-producing 

industries was down 0.1%, while services edged up 0.1%. 

     - Adding to the fourth quarter disappointment, annualized GDP 

growth was revised down to 1.5% in 3Q from 1.7%. However, the overall 

picture still fits the BOC's scenario of a slowdown in the second half 

of 2017. For the whole year, GDP rose 3.0%, as projected by the central 

bank, the fastest rate since 2011. 

     - GDP rose 0.4% on a quarterly basis. Household consumption growth 

slowed to 0.5% from 0.9%. The contribution to annualized GDP declined to 

1.2 points from 2.1 points in 3Q. Business investment rose 2.3% after 

0.8% in 3Q, with the contribution to annualized GDP increasing to 1.7 

points from 0.6 points. 

     - Exports rebounded 0.7% after declining 2.7% in 3Q, while imports 

rose 1.5% after edging up 0.1%. As a result, net trade trimmed 4Q GDP by 

about 1.1 points. Investment in inventories had a net negative 

contribution of 0.7 points. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

[TOPICS: M$C$$$,MACDS$]