The figures suggest a still-sluggish economy as the prospect of further turbulence looms into view with the impending inauguration of Donald Trump as president south of the border. This week, the president-elect vowed to slap a 25% tariff on all Canadian goods entering the US unless Canada tightens border security and cracks down on the flow of illegal immigrants and drugs.
Odds of a half-point cut by the Bank of Canada jumped after the StatCan release, rising to more than 33% from a one in four chance beforehand, according to Bloomberg.
Non-residential business investment was down by 11.3% for the quarter, StatCan said, while household consumption increased by 3.5% and the household savings rate hit a three-year high of 7.1%.
The Bank of Canada is scheduled to make its final interest rate decision of the year on December 11, having trimmed rates in each of its last four announcements by a combined 1.25%.
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