The Financial Post reports in its Thursday edition that Canada's economic growth in the third quarter may fall below the Bank of Canada's forecast. The Post's Gigi Suhanic writes that Capital Economics economist Alexandra Brown says, "We continue to expect a weak third quarter, with growth on track to significantly undershoot the [BOC's] one-per-cent forecast." Manufacturing sales contracted 1 per cent in August, according to Statistics Canada data, although that beat estimates for a 1.5-per-cent drop. Their value declined 1.5 per cent for the month. Statistics Canada said the automotive sector posted "lower-than-typical seasonal sales" of parts and vehicles, which fell 5.2 per cent and 3.3 per cent as production slowdowns hit plants in Ontario.
"Market uncertainty and the tariffs imposed by the United States have also contributed to irregular production schedules at some assembly plants," the agency said. Ms. Brown says the manufacturing data for August held up better than what economists expected, providing a bit of a backstop to a rebound in factory sales in June and July, when they rose 0.3 per cent and 2.3 per cent.
It was not all rosy, however. Ms. Brown says, "The available data point to a weak September."
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