Canadian economy expands 0.1 pct in 3rd quarter

Canada's real gross domestic product ( GDP) grew just 0.1 percent in the third quarter this year, 0.6 percent at an annual pace, Statistics Canada announced Friday. The agency said the GDP growth slowed from last quarter's 0.4 percent, due to declines in exports and business investment. Exports fell 2.0 percent in the third quarter, the largest decline since the second quarter of 2009, while business investment in non-residential structures and in machinery and equipment decreased 0.6 percent, following consecutive quarterly increases that began in the third quarter of 2009. Following a 0.1-percent decrease in the previous quarter, business investment in housing has a further decline of 0.9 percent as housing resale activity slowed considerably. The output of goods production declined 0.6 percent. Mining and oil and gas extraction and, to a much lesser extent, manufacturing and construction were the main sources of the decline. Oil and gas extraction fell 1.4 percent as both crude oil and natural gas production declined, while mining excluding oil and gas extraction was down 2.8 percent, as production declines at potash and at copper, nickel, lead and zinc mines offset increases in coal mining. On the other hand, household spending on goods and services advanced 0.9 percent, the fastest pace so far in 2012, representing almost the entire driver for the quarter.