OTTAWA, Jan 30 (Reuters) – Canada’s economy shrank more than expected in November as businesses across most sectors clipped back production, suggesting the recession that started in the fourth-quarter is steeper than expected.
The economy contracted 0.7 percent in the month, the biggest drop in five years, as feeble global demand forced cuts and layoffs in manufacturing, construction, wholesale and real estate industries, Statistics Canada said on Friday.
In the worst year-over-year performance since August 1991, the economy shrank 0.8 percent compared with November 2007. The Canadian dollar strengthened slightly after the data
Economists, surprised by the swift deterioration from a 0.1 percent decline in October, now expect the fourth-quarter contraction of close to 3 percent. That compares with the Bank of Canada’s latest projection of a 2.3 percent decline.