The Canadian economy stalled in the fourth quarter of 2022
Real gross domestic product remained virtually unchanged in the fourth quarter in Canada, after posting five consecutive quarterly increases.
After five consecutive quarters of growth, Canada's real GDP remained stable in the last quarter of 2022, falling 0.1% in December after rising 0.1% in November, Statistics Canada finds.
The slowdown in warehouse inventory accumulation put downward pressure on GDP growth from October to December 2022, according to the federal agency.
The accumulation of manufactured goods and durable goods in the wholesale and retail trade sectors was significantly lower than that observed in the previous quarter. The accumulation of agricultural inventories has shown a similar slowdown, says Statistics Canada.
In 2022, Canadian warehouses recorded a $33.2 billion accumulation of non-agricultural inventories . This is nearly twice the previous record of $18.2 billion in 2017.
In addition to inventories, investment also slowed in the last quarter of 2022.
A 7.8% decline in business investment in machinery and equipment combined with a 2.3% slowdown in the housing sector also mitigated the impact of higher household and government spending and improved trade in the last three months of 2022.
Easing supply chain disruptions allowed businesses across the country to respond more adequately to consumer demand in the fourth quarter. This prompted households to spend 3.4% more on durable goods, particularly automobiles.
Overall, Canadian household spending increased by 4.2% in 2022, according to Statistics Canada.
More details to come