The Canadian economy contracted for a second consecutive month in November, signaling recession for the world's eighth biggest economy. Canada's real gross domestic product fell 0.7% in November as essentially all major sectors reduced production, according to the latest data released by Statistics Canada.
The output of manufacturing, wholesale trade, construction and real estate agents and brokers were the main contributors to the November decrease. The transportation, energy, retail trade, finance and insurance sectors also retreated. On the other hand, economic activity advanced slightly for some tourism-related industries, agriculture and the public sector (health, education and public administration combined).
Activity in the manufacturing sector continued to decline in November (-2.1%), reaching a level of activity nearly 4% below that recorded in the first half of 2008. The decrease was widespread in November, with 18 of the 21 major groups losing ground. The level of employment in this sector also dropped noticeably.
The decrease in domestic and foreign demand continued to hamper wholesale trade. The volume of wholesaling activity fell 3.1% in November. The decline was broadly based. The most notable declines were in the wholesaling of machinery and equipment, home and personal products, and other products (which include agricultural, chemical, recycled material and paper products).
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