Key facts
- Canada's economy showed no growth in July.
- Manufacturing sector decreased by 0.9% in July.
- Mining, quarrying and oil and gas extraction declined by 0.5% in July.
- Utilities and construction sectors grew by 1.7% and 1.3% respectively in July.
- Retail trade shrunk by 1% in July.
- An advance estimate projects a 0.2% monthly growth rate for August.
Canada's economy registered no growth in July, according to data released by Statistics Canada on Tuesday. This flat performance follows three consecutive months of positive expansion and signals a slower start to the third quarter, especially as new U.S. tariffs were set to take effect in August.
Both the goods-producing and services-producing industries remained largely unchanged. Within the goods sector, manufacturing saw a decrease of 0.9%, primarily due to a 6.2% decline in petroleum refinery activity. Mining, quarrying, and oil and gas extraction also fell by 0.5% for the second consecutive month. However, these declines were partially offset by growth in utilities (1.7%) and construction (1.3%), with the latter sector expanding for the fourth month in a row.
In the services sector, retail trade contracted by 1%, and wholesale trade was down 0.4%. Conversely, professional, scientific, and technical services saw their largest monthly growth rate in 20 months, rising by 0.3%. The real estate, rental, and leasing category grew by 0.2%, marking the sixth consecutive month of expansion for real estate.
Looking ahead, Statistics Canada's advance estimate indicates a likely rebound in August, with a projected monthly growth rate of 0.2%. This anticipated growth is expected to be led by higher output in mining and quarrying, as well as retail trade. The Bank of Canada has forecast an annualized growth of 1.5% for the third quarter.