Ontario economy contracts in final quarter
Ontario's economy shrunk 1.4 per cent in the last three months of 2008, reflecting the "steep sudden downturn" around the globe, the finance ministry reported today.
The decline from October to December provides the final piece of the puzzle for all of last year, which saw the struggling provincial economy shrink 0.4 per cent.
The third quarter number shows Ontario's economy shrunk at a faster rate than the overall Canadian economy, which fell 0.8 per cent in the three-month period leading up to the new year free credit report and score.
Among the causes, consumer spending fell by one per cent, the finance ministry reported – the first such quarterly decline in five years.
Businesses cut back their spending on machinery and equipment by 9 per cent, non-residential construction fell 2.7 per cent and residential construction investment spending dropped 7.2 per cent in the fourth quarter.
The U.S. economy shrunk 1.6 per cent in the same period.
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