MNI 5 THINGS: Canada Nov GDP -0.1%, As Expected;Services Flat>

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

data on Canadian GDP released Thursday by Statistics Canada: 

     - November GDP contracted by 0.1% in November, in line with 

analysts' expectations in a MNI survey. The 12-month growth rate slowed 

to 1.7% from 2.2%. The figures add downside risk to the Bank of Canada's 

growth estimates for the fourth quarter, especially if December also 

proves weak. 

     - Output in goods-producing industries fell 0.3%, giving up all the 

gains of the previous month. Manufacturing was down 0.5%, partly erasing 

the 0.8% advance recorded in October, consistent with the monthly data 

that showed a 0.9% decrease in real manufacturing shipments. Durable 

manufacturing was down 0.7%, and non-durable down 0.3%. 

     - There was no relief from the services sector, where activity was 

unchanged on the month, after increasing 0.3% in October. This was the 

first time that the services sector failed to post an increase since 

August 2017, when activity was also flat. A 1.1% drop in wholesale trade 

and a 0.7% drop in finance and insurance particularly weighed, while 

retail trade was down 0.3%. 

     - The report showed ongoing signs of weakening in the housing 

market. Construction was an important downward contributor to the 

weakness of the goods-producing industries, as activity fell 0.3%, 

recording its sixth consecutive decrease. Activity at offices of real 

estate agents and brokers fell 2.8%, on the back of a 1.7% decline in 

October. 

     - Energy fell 0.6%, including a 1.6% contraction in oil and gas 

extraction, with crude petroleum extraction affected by a storm off of 

the East Coast. Elsewhere, the ongoing Canada Post strike weighed on 

transportation and warehousing, which was expected. The strike ended 

Nov. 27. Overall, however, 13 of 20 industries managed to post gains. 

The public sector was up 0.2%. 

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

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