Statistics Canada says real gross domestic product decreased 0.2 percent in November, the largest monthly contraction since December 2023.
However, the agency said Friday its preliminary estimate for December pointed to an increase of 0.2 percent for the final month of the year.
The advance estimate suggests an annualized growth rate of 1.8 percent in the fourth quarter of 2024.
The economic report came as the U.S. threatens to impose tariffs on goods coming from Canada as soon as Saturday.
For November, Statistics Canada said goods-producing industries contracted 0.6 percent, as mining, quarrying and oil and gas extraction fell 1.6 percent in November.
The utilities sector dropped 3.6 percent in November, as electric power generation, transmission, and distribution fell 4.4 percent.
Services-producing industries edged lower by 0.1 percent in November, weighed down by the transportation and warehousing sector which fell 1.3 percent as it was hit by work stoppages including a strike by 55,000 postal workers.
Statistics Canada also pointed to labour disputes at the Port of Montreal and Port of Vancouver during the month.
The agency noted that several leisure-related industries including accommodation and food, arts, entertainment and recreation and air transportation grew in November as Taylor Swift’s Eras Tour arrived in Toronto.
The accommodation and food services sector increased 1.4 percent in November, the largest rise since January 2023, while arts, entertainment and recreation grew 0.8 percent. Air transportation added 1.3 percent in November.
