-Nick Exarhos, CIBC
The Canadian economy advanced for the fifth consecutive month in November amid the strengthening manufacturing sector, official figures revealed on Tuesday. Gross Domestic Product climbed 0.4% in the reported month that was above analysts' forecasts of a 0.3% hike. Meanwhile, the October reading was revised up to a 0.2% decline from the originally reported 0.3% slump. On an annualized basis, the Canadian economy expanded 1.6%. In the meantime, the goods-producing sector advanced 0.9%, after falling 0.1% in the previous month. Growth was driven by a 1.4% monthly increase in the mining and energy sector, which grew 3.0% on an annual basis in the same month. Separately, Statistics Canada reported manufacturing output gained 1.4%. In the meantime, construction output dropped 1.1%, compared with the same month one year ago. The utilities production fell 3.0% as demand for heating diminished amid warmer-than-usual weather. The growth in the retail sector remained steady, while the insurance and finance sectors reported a 1.5% gain. Furthermore, the services sector added 0.2%, posting an annual increase of 1.9%. According to the latest forecasts released in December, the Bank of Canada expected the economy to expand at an annualized pace of 1.5% in the last quarter of 2016.
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