07:00 AM EST, 12/03/2024 (MT Newswires) -- Canadian Q3 GDP growth underwhelmed, clocking in at a meager 1% annualized on Friday, noted Bank of Montreal (BMO).

That was a touch below consensus and a bit further below the Bank of Canada's forecast.

Business investment was a big reason for the miss, plunging nearly 28% a.r. in the quarter, reversing the prior month's 23% pop and then some, said the bank.

While weak business investment and productivity are an ongoing sore spot for Canada, the details matter, stated BMO.

The volatility in business investment was largely driven by a jump in airplane purchases in Q2, which then reversed in Q3. There's much more stability in business investment excluding aircraft, pointed out the bank.

"Stability" is hardly something to brag about, but it should put to bed any comments that investment slipped despite the BoC's

rate cuts, added BMO.

Canada has plenty of work to do to become a friendlier destination for businesses and capital. However, the bank stressed the importance of looking into the details before preaching short-term monetary policy advice based on headline figures.