- Bruce Cooper, chief investment officer of the asset management arm of Toronto-Dominion Bank
Canada's economic growth was unexpectedly flat in October after shrinking a month earlier, due to drop in manufacturing, utilities and retail sales, Statistics Canada reported. Manufacturing production slid 0.3%. The declines offset a 0.8% increase in mining and oil and gas extraction in October. Economic output was little changed at an annualized C$1.64 trillion compared with September, when the economy shrank 0.5%, the most since March 2009, whereas economists had predicted a 0.2% gain in October. Economists expect growth to slow to 1.2% this year from 2.5% in 2014. The Canadian economy will have to wait for at least two years before growth returns to where it was before the plunge in oil prices. The nation's economy is seen growing 1.8% in 2016 and 2.1% in 2017. Investors are increasing bets Bank of Canada Governor Stephen Poloz will cut the 0.5% interest rate as oil prices hit new lows and growth in many other industries fails to take up the slack.
Furthermore, Canada's retail sales rose a modest 0.1% in October, following an upwardly revised decline of 0.4% in September. The October data was a disappointment as economist had anticipated a 0.4% growth.
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