Not only were third quarter GDP growth numbers surprisingly strong, but the fact that Stats Can has now revised first and second quarter numbers higher than first reported has given the country a real boost going forward.
As reported in this morning’s Globe and Mail we think that Douglas Porter, chief economist at Bank of Montreal said it best, “What’s encouraging about today’s figures are the upward revisions to the first half, and the surprisingly solid performance by the economy at the end of the quarter, presaging respectable growth in the fourth quarter as well.”
Growth came in at annualized rate of 3.5 per cent for the second quarter ending September 30, the fastest pace since second quarter of 2014.
Encouraging was the jump in exports led by the surge in oil production after the Fort Macmurray wildfires along with domestic consumption, long a bellwether of the overall strength of the economy.
Now it will be a wait and see for the coming months of whether in fact the economic engine has actually turned, or is this a one off as energy production has bounced back carrying the most of the heavy lifting.
As things smooth out it will be fourth quarter results that will tell the tale of whether the long sought after rebound is actually in place.