Ottawa – Canada’s economy showed no growth in July, according to the latest data released by Statistics Canada on Tuesday. The flat performance aligns with economists’ expectations and signals a slower start to the third quarter after three consecutive months of positive growth.
Sector‑by‑sector snapshot
Both goods‑producing and services‑producing industries were largely unchanged. The goods‑producing side, which accounts for roughly a quarter of Canada’s gross domestic product, saw mixed results. Manufacturing slipped 0.9%, marking its first decline in four months, primarily because petroleum refinery activity fell 6.2%.
The mining, quarrying and oil‑and‑gas extraction segment posted a 0.5% drop for the second month in a row. In contrast, utilities rose 1.7% and construction grew 1.3%, offsetting much of the overall decline. Construction has now risen for four straight months.
On the services side, retail trade contracted 1% and wholesale trade fell 0.4% in July. Wholesale had been a major growth driver in June. Meanwhile, professional, scientific and technical services increased 0.3%, the strongest monthly gain in the past 20 months. Real estate, rental and leasing grew 0.2%, extending a six‑month streak of expansion.
Looking ahead to August
An advanced estimate from Statistics Canada suggests the economy will post a modest rebound in August, with a projected monthly growth rate of 0.2%. The forecast attributes the uptick to higher output in mining and quarrying as well as a bounce‑back in retail trade.
The Bank of Canada has projected an annualized growth rate of 1.5% for the third quarter, indicating that the modest August gain could help keep the economy on a steady, if modest, growth path.
Context of upcoming U.S. tariffs
The July data arrive just before a new set of tariffs from the United States is scheduled to take effect on Canadian imports in August. While the immediate impact of those tariffs is not yet reflected in the July figures, analysts will be watching closely to see how they influence trade‑related sectors such as mining, quarrying and retail.
Overall, the flat July reading underscores the importance of diversified growth across both goods‑producing and services‑producing sectors. The anticipated modest rebound in August offers a hopeful sign that Canada’s economy can maintain momentum despite external trade pressures.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
