Labour productivity of Canadian businesses rose 1.2% in the third quarter, after declining 0.2% in the second quarter.

Although this was the highest rate of growth since the second quarter of 2014 (+1.9%), the increase in productivity reflects a rebound in business output following a decline in the second quarter. Hours worked continued to decrease, but at a slower pace than in the previous quarter.

After decreasing 0.7% in the second quarter, real gross domestic product (GDP) of businesses rose 1.0% in the third quarter. Goods-producing businesses contributed the most to the gain, as mining and oil and gas extraction and manufacturing activities increased. In the second quarter, output was disrupted by the forest fires in northern Alberta and scheduled maintenance shutdowns in the oil and gas extraction industry.