OTTAWA - Canada's economy is displaying fresh symptoms of a slowdown, with data released Friday showing inflation falling to the lowest level in three years and output barely growing.
Statistics Canada's consumer price index fell four-tenths of a point to 0.8 per cent in November — the lowest since October 2009, when the country was just emerging from a deep slump.
Meanwhile, the economy grew by a minimal 0.1 per cent after a flat month in September and 0.1 per cent contraction in August. Over the past three months, Canada's economy has essentially not grown.
The Canadian dollar was down about half a cent Friday afternoon, although it had been even lower in the morning. The Toronto stock market was little changed.
A loss in U.S. growth would also rebound on Canada, which is experiencing problems of its own, including a cooling housing market and high consumer debt.
"Our bearish call a year ago for moderate to weak GDP growth, subdued inflation and prolonged low interest rates is looking prescient now," said David Madani, an analyst with Capital Economics in Toronto.
He says he expects the Canadian economy to grow at only one per cent next year.
That's about half the consensus forecast.
Lower inflation, soft GDP points to weakness in Canadian economy - Winnipeg Free Press (external - login to view)