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November 28, 2014CANADIAN ECONOMIC ACCOUNTS Q3 2014 Canadian GDP grew 2.8 per cent (all figures seasonally adjusted annualized rate) in the 3rd quarter 2014. This follows growth of 3.6 per cent in the previous quarter and 1.0 per cent in the first quarter of 2014. Increases in exports (+6.9%) and household final consumption (+2.8%) were the main contributors to GDP growth. Gross fixed capital formation (+5.3%) also made a positive contribution. Inventories and rising imports partially offset the gains.
Household consumption grew at an annualized rate of 2.8 per cent in the quarter, slower than pace of the previous quarter . Led by gains in durable purchases (+12.6%) through increased purchases of vehicles. Spending on housing, water, electricity, gas and other fuels; recreation and culture; and furnishings, household equipment and other goods made positive contributions. Services increased 2.1 per cent after a stronger 3.5 per cent in the second quarter. Residential investment was up 12.5 per cent the strongest quarter since first quarter of 2012- ownership transfer costs, new construction and renovations all made positive contributions.
Business investment in non-residential structures declined (-1.9%) and has decreased in three of the last four quarters. Machinery and equipment was up 2.4% on outlays for medium and heavy trucks, buses and other motor vehicles. After declining over the first half of the year, intellectual property products increased 15.9 per cent with growth in mineral exploration and evaluation, research and development and software. Inventory accumulation slowed, with $647 million added to inventories in the third quarter after $4.8 billion in the second quarter.