MNI DATA IMPACT: Canada Flash GDP +0.7% in Sept, Q3 +10%

Canada reported flash GDP estimates of 0.7% in September and a third-quarter gain of 10% from the previous three months in a report Friday.

Statistics Canada's flash September growth figure is another big slowdown from the official August gain reported at 1.2%. GDP also grew 3.1% in July and 6.5% in June, in the burst of spending following the widespread Covid-19 lockdowns in the spring.

The quarterly flash figure meshes the Bank of Canada's view of 10.2% growth in the third quarter, though it and industry sources have told MNI growth will almost stall in the fourth quarter because of a return of some health restrictions.

Output remains about 5% below the pre-Covid level, Statistics Canada's report said.

August GDP was boosted by higher spending by schools preparing to re-open in September in line with social distancing rules, and from public hospitals and government administrators. Manufacturing rose 1.2%, the fourth straight monthly gain, on medical supplies and lumber amid gains in homebuilding. Fifteen of 20 major industries rose in August.

September GDP was boosted by manufacturing, government and the mining and energy industries.

Output in August was 3.8% lower than during the same month last year, with energy down 13% and accommodation and food services tumbling 29%.