It will be a blue Christmas for Canadian economic data as it was revealed this morning that, despite upbeat retail sales numbers yesterday lending some optimism, Canadian GDP actually fell in the month of October by 3/10ths of a per cent.
It was the worst monthly reading in the last year, but this turnaround follows three prior months of stronger economic growth.
The weak start to the final quarter of 2016 will call into question the Canadian bank forecasts expecting around 2% per cent annualized growth in the three-month span, but setting up the bank of Canada with a little more modest forecast around 1.5% to be closer to target.
A standout was the manufacturing sector, which declined by 2% for its second worst month since the recession, and concern over the broad based decline, versus previous months limited to a particular sector or industry like oil and gas.
Perhaps, with prior months maintaining modest economic growth, October could be a bit of an outlier.