NEWS

Canada's economy stalls in October

12/23/2011 09:15 EST | Updated 02/22/2012 05:12 EST

Canada's gross domestic product was unchanged in October, after four straight monthly increases, Statistics Canada reported Friday.

Goods-producing industries shrank by 0.2 per cent, which was offset by a 0.2 per cent gain in the services sector.

"The Canadian economy entered [the fourth quarter] on a weak note," Scotiabank economist Derek Holt and Karen Cordes Woods said in a research note following the data's release.

Wholesale trade and some tourism-related industries fell.

The utilities sector decreased 1.5 per cent in October, as mining and oil-and-gas extraction declined 0.2 per cent , construction decreased 0.4 per cent and wholesale trade fell 0.3 per cent.

"Temperatures in November and December have also been comparatively mild, so utilities production is unlikely to recoup October’s weather-related decline through year end," CIBC economist Peter Buchanan said in a research note.

Existing-homes sales increased across the country, while manufacturing production rose 0.3 per cent, retail trade increased 0.6 per cent and the finance and insurance sector rose 0.3 per cent.

"Although it’s still early going, today’s flat reading could suggest some downside risk to … the quarter as a whole," Buchanan said.

MORE:cbcNews