FX.co ★ Canada GDP Seen Contracting in October

In October 2025, Canada's GDP experienced a contraction of 0.3% compared to the prior month, based on preliminary estimates. This downturn more than counteracted the revised 0.2% growth recorded in September, equalling the most significant monthly decline in the Canadian economy since December 2022. The output from goods-producing sectors weakened due to reductions in manufacturing and oil and gas extraction, though there was growth in mining, quarrying, and support services. The services sector also saw a decline, influenced by reduced activity in educational services and various service subsectors, despite a rebound in transportation and warehousing spurred by a robust recovery in air transportation in September. Although wholesale trade grew in September, retail trade saw a reduction. On a year-over-year basis, real GDP increased by 0.5% in the third quarter.