The Bank of Canada will have to grapple with an underperforming economy, signs of a returning consumer and a “dark cloud” hanging over the nation’s trade prospects as it gears up for its final interest rate decision of the year.
Canada’s economy did continue to grow in the third quarter, Statistics Canada reported on Friday.
On an annualized basis, real gross domestic product rose one per cent between July and September, according to StatCan. That marks a slowdown from 2.2 per cent annualized growth in the previous quarter.
The results undershot the Bank of Canada’s call for 1.5 per cent annualized growth in the third quarter, which had already been revised down from an earlier forecast of 2.8 per cent.
StatCan pointed to increased consumer spending, particularly on new trucks, vans and SUVs. Spending was also higher across all levels of government in the third quarter, the agency said.
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And while consumer spending was …