Statistics Canada said Tuesday that the total value of all goods and services was $ 2,093 billion in the quarter, seasonally adjusted at an annualized rate. This is an increase from $ 2,066 billion in the previous three months, when the economy contracted for the first time since the early days of COVID-19.
A jump in consumer spending was the main reason for the overall increase, with households spending more on semi-durable goods (up 14%) as well as on services (up 6%).
Semi-durable goods are items that last longer than short-term consumables like food, but not as long as durable goods like household appliances.
A good example of a semi-durable good would be a garment, and spending on these increased nearly 27 percent in the quarter. Spending on footwear has also increased by more than 30 percent, meaning Canadians are now spending more on clothing and footwear than they were before the pandemic.
There was also an increase in spending on services that Canadians had delayed during the pandemic.
Things like transportation services, which include airline tickets, increased by more than 40%, while spending on recreation and culture increased by 26%.
Spending on food, drink and accommodation rose 29%, while personal care services, such as haircuts, jumped by more than a third.
Good but not great
TD Bank economist Sri Thanabalasingam said that overall the numbers were good, but could have been even better had it not been for the lingering problems in the supply chain. supply with big ticket items.
“Hindered by disruptions in the global supply chain, consumers have spent less on durable goods, especially automobiles, and businesses have invested less in machinery and equipment,” he said. “Without the supply shortages, GDP growth could have been even stronger in the third quarter.
Ima Sammani, market analyst for currency exchange firm Monex, said the data was generally positive, but largely redundant due to events since the end of September.
“Despite the impression of significantly stronger GDP than expected, the market reaction has been relatively subdued given … new concerns about growth dynamics have arisen following the discovery of the omicron variant,” she said. .