BMO on The Day Ahead in Canada

07:21 AM EST, 12/03/2025 (MT Newswires) -- Canada will release labor productivity data for Q3 at 8:30 a.m. ET on Wednesday, the sore spot of Canadian economic data, said Bank of Montreal (BMO).

However, given the rebound in real gross domestic product growth in the quarter, the bank is looking for a "firm" 0.5% increase in the quarter.

Bigger picture, federal policy is clearly trying to ramp up productivity growth through business investment-focused tax relief and a more favorable environment for major project approvals, stated BMO. Meantime, the bank won't be surprised if the pullback in population growth arithmetically begins to filter through to better productivity numbers in the quarters ahead.

On the housing front, Toronto home sales were down 15.8% from a year ago and down modestly month-over-month in seasonally-adjusted terms in November as the correction continues, pointed out the banj. New listings were down a softer 4.0% year over year in the month, and the benchmark price was down 5.8%.

Below the surface, condo sales were down almost 22% from a year ago as that sub-market is really feeling it now. As market conditions vary widely across Canada, Southern Ontario, especially condos, remain the weak spot, added BMO.

The Canadian dollar (CAD or loonie) starts Wednesday at $1.395/USD (71.7 US cents), according to the bank.

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