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UPDATE 1-Canadian GDP unexpectedly fell in Aug amid industry shutdowns
October 31, 2017 / 12:40 PM / 19 days ago

UPDATE 1-Canadian GDP unexpectedly fell in Aug amid industry shutdowns

(Adds details of release, background)

OTTAWA, Oct 31 (Reuters) - The Canadian economy unexpectedly shrank by 0.1 percent in August, the first decline in almost a year, in part due to maintenance shutdowns in the chemical and extractive industries, Statistics Canada data indicated on Tuesday.

Analysts in a Reuters poll had predicted a 0.1 percent increase in GDP after the economy stalled in July. The fall, the first since the 0.1 percent drop seen in October 2016, underlines forecasts from the Bank of Canada that growth will slow in the third quarter.

The manufacturing sector slipped by 1.0 percent, pulled down by a 7.3 percent slump in chemical manufacturing, the largest month-on-month decline in 20 years, caused by plant shutdowns and lower demand for export markets.

The mining, quarrying and oil and gas sector edged down by 0.8 percent as maintenance-related closures hit conventional oil output in Newfoundland and Labrador.

Last week the Bank of Canada lowered its estimate for third-quarter annualized growth to 1.8 percent to 2.0 percent and said it would be more cautious about further rate hikes.

Reporting by David Ljunggren; Editing by Meredith Mazzilli

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