Canadian factory sales were down 1.4 percent in November from October on lower petroleum and coal product sales, Statistics Canada said. Analysts had forecast a decrease of 0.9 percent.
Separate data from Statistics Canada showed that Canadian wholesale trade decreased by 1.0 percent in November from October, as weaker sales in the machinery, equipment and supplies subsector led the decline. Analysts had forecast no change.
"We still need to get retail sales of course but I have negative 0.1 (percent) penciled in for November GDP," said Ryan Brecht, a senior economist at Action Economics.
Canada's retail sales report for November is due on Wednesday.
The Bank of Canada expects low oil prices and a weak housing market to harm the economy in the short term. Money markets expect the central bank, which has hiked interest rates five times since July 2017, to leave rates on hold over the coming months.
At 9:38 a.m. (1438 GMT), the Canadian dollar
The decline for the loonie came as stocks and the price of oil were pressured by fears of a slowdown in the global economy. It follows the International Monetary Fund's warning on Monday of a darkening outlook.
U.S. crude oil futures fell 2.2 percent to $52.63 a barrel.
Canada exports many commodities, including oil, so its economy could be hurt if the global economy slows.
Canadian government bond prices were higher across the yield curve in sympathy with U.S. Treasuries. The two-year
On Friday, the 10-year yield touched its highest intraday in one month at 2.049 percent.
(Reporting by Fergal Smith; Editing by David Gregorio)
By Fergal Smith
