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After brief contraction, Canada’s economy grew again in third quarter

Canada's gross domestic product expanded by 1.3 per cent from July to September, as the end of some pandemic restrictions helped boost consumer spending and exports.


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Canada's gross domestic product expanded by 1.3 per cent from July to September, as the end of some pandemic restrictions helped boost consumer spending and exports.

Photo: CBC/Brian Morris

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Spending on services and many types of goods bounced back strongly

Statistics Canada said Tuesday that the total value of all goods and services was $2.093 trillion in the quarter, seasonally adjusted at an annualized rate.

That's up from $2.066 trillion in the previous three-month stretch, when the economy contracted (new window) for the first time since the early days of COVID-19.

A jump in consumer spending was the biggest reason for the overall increase, with households spending more on semi-durable goods (up 14 per cent) as well as services (up six per cent).

Semi-durable goods are items that last longer than short-term consumables like food, but not as long as durable goods such as appliances.

A good example of a semi-durable good would be an item of clothing, and spending on those increased by almost 27 per cent during the quarter. Spending on footwear also surged by more than 30 per cent, which means Canadians are now spending more on clothes and shoes than they were before the pandemic.

There was also a surge in spending on services that Canadians had been delaying during the pandemic. 

Things like transportation services, which includes flight tickets, rose by more than 40 per cent, while spending on recreation and cultural activities went up by 26 per cent. 

Spending on food, beverages and accommodation went up by 29 per cent, while personal grooming services, such as haircuts, jumped by more than a third.

CBC News

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