Canadian economy’s third-quarter growth tops forecasts, but rising interest rates starting to bite

The Canadian economy grew faster than expected in the third quarter, although weakening housing investment and consumer spending suggests rising interest rates are beginning to bite and the economy is starting to sputter.

Gross domestic product increased 2.9 per cent on an annualized basis from July to September, Statistics Canada said Tuesday. That’s well ahead of the Bank of Canada’s forecast of 1.5-per-cent growth in the quarter. Preliminary data for October, however, showed the economy flatlining.