Canada’s economy shrank in the three months up to September, as household spending was flat and exports declined.
Statistics Canada reported Thursday that the country’s gross domestic product shrank by 0.3 per cent.
Exports fell by 1.3 per cent and imports declined by 0.2 per cent.
Household spending was flat for the second quarter in a row, and after five consecutive quarterly declines, housing investment increased by two per cent in the quarter.
The data agency previously reported that the three-month period up to June also saw a slight decline, so Thursday’s numbers would have been the second consecutive quarterly contraction in a row, and meet the bar that some experts say is the requirement for a recession.
But the data agency revised its April-to-June numbers higher than initially reported, and now says the economy grew by 0.3 per cent that quarter.
Doug Porter, an economist with Bank of Montreal, said that the upward revision of the April-to-June numbers makes recessionary talk premature, but regardless, the numbers paint a picture of an economy that isn’t really expanding.
“Whatever label you slap on this economy, it’s basically not growing, despite the artificial sweetener of rapid population growth,” he said. “The big picture is that the Canadian economy is struggling to grow, yet managing to just keep its head above recession waters.”
The weak GDP numbers make it a virtual certainty that the Bank of Canada will see no need to raise interest rates any time soon, starting with its next policy decision next week.
Derek Holt, an economist with Scotiabank, says the numbers aren’t as bleak as the headline contraction would suggest, and much of the weakness stems from short-term factors.
“Half the country was literally on fire over the summer and those wildfires disrupted a broad cross-section of economic activity from shut mines and petrochemical facilities to agriculture, forestry and tourism under the warm glow of orange skies,” he said.
Ultimately, he doesn’t see any evidence that a recession is underway.
“The economy is not in recession as some folks across [Bay] Street have been claiming,” he said. “The recessionistas have some explaining to do and the Bank of Canada won’t see enough in here to guide easing any time soon.”
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
