08:52 AM EST, 01/31/2025 (MT Newswires) -- Canada is facing a major hurdle from potential United States tariffs and Friday's gross domestic product data suggests that the economy was already stumbling on the approach to that hurdle, said CIBC.

November GDP posted a 0.2% month-over-month decline, which was a tick worse than the advance estimate, noted the bank. Multiple work stoppages impacted activity in the transportation sector, while mild weather lowered demand for utilities.

However, even outside of these areas, declines were also seen in mining, oil & natural gas, manufacturing, wholesale, retail and other sectors. Construction, real estate and food & accommodation saw increases and offered a slight counterbalance.

The advance estimate for December pointed to 0.2% month-over-month growth, essentially offsetting the decline in November, although the continued postal strike would have still weighed on activity in the transportation & warehousing sector, stated CIBC.

For Q4 as a whole the advance estimate points to 1.75% annualized growth, essentially in line with the Bank of Canada's 1.8% Monetary Policy Report forecast although largely due to the strong increase seen in October, added CIBC.

Overall, the economy appears to be in reasonable, although not great, health and clearly risks to the future outlook have intensified recently, leaning towards further interest rate cuts from the BoC, according to the bank.