MNI DATA IMPACT: Exports Slow Canada 3Q GDP to +1.3% Pace>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canada's GDP growth slowed to a 1.3% annualized pace 

in the third quarter as exports declined, matching the central bank's 

view the economy's resilience is being tested by global trade fights. 

     Exports shrank 1.5% for the third decline in the last four reports. 

Growth was slowed even more as companies cut back on inventories, 

Statistics Canada reported Friday from Ottawa. 

     The last major report before the BOC's Dec. 4 interest-rate 

decision showed few surprises that could move Governor Stephen Poloz's 

view that monetary policy is about right. Modest growth could be enough 

to keep the economy close to full output and inflation at the BOC's 2% 

target, though risks of inconsistent consumer or business spending 

remain. 

     One bright spot was a 9.5% rise in business investment in 

non-residential structures and machinery, the fastest in three years. 

That part of the economy has been one of the weakest as energy companies 

cut back and trade wars led executives to hestiate about building new 

capacity. 

     Investment in new housing rose 13% in the third quarter, the 

fastest gain since 2012. That may help curb price gains that have led to 

questions about a potential correction in Toronto and Vancouver, and 

consumers that have taken on record debts to get into those markets. 

     Household spending also quickened to 1.6% from 0.5%, aided 

by the biggest increase in truck and SUV sales in four years. 

     The quarter ended with a 0.1% rise in GDP for September. The 

quarterly and monthly growth rates matched the MNI economist medians.

     Statistics Canada lowered its second-quarter growth estimate to 

3.5% from an initial 3.7%. 

--MNI Ottawa Bureau; email: greg.quinn@marketnews.com, +1-613-314-9647

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