Canada’s GDP Shrinks on Biggest Factory Drop in Six Years

Canada’s economy shrank in November on manufacturing and oil production, pushing the dollar to the weakest in almost six years on speculation the central bank will make another rate cut following last week’s surprise move.

Gross domestic product shrank by 0.2 percent, the most in 11 months, to an annualized C$1.65 trillion ($1.30 trillion), Statistics Canada said Friday in Ottawa. The median forecast in a Bloomberg economist survey was for output to be little changed. Manufacturing declined by 1.9 percent, the most since January 2009, mining and quarrying fell by 2.5 percent, and oil and gas extraction by 0.7 percent.