Canada's economic growth unchanged in July, August likely to expand 0.2%
Summary
Canada’s economic growth was flat in July in Ottawa, according to Statistics Canada, after three straight months of gains and ahead of new U.S. tariffs in August. Goods-producing and services-producing industries were mostly unchanged, while manufacturing fell 0.9 percent and retail trade dropped 1 percent. StatsCan said August growth was likely to rebound 0.2 percent, and the Bank of Canada forecast 1.5 percent annualized growth in the third quarter.
Key Facts
- Manufacturing fell 0.9 percent in July, its first decrease in four months, led by a 6.2 percent drop in petroleum refinery activity.
- Mining, quarrying and oil and gas extraction declined 0.5 percent for a second straight month.
- Utilities rose 1.7 percent and construction increased 1.3 percent, with construction up for a fourth consecutive month.
- Retail trade shrank 1 percent in July, while wholesale trade fell 0.4 percent after being a major contributor to June growth.
- Statistics Canada said the economy was likely to grow 0.2 percent in August, led mainly by higher output in mining and quarrying and retail trade.
A truck passes over the Peace Bridge from the U.S. state of New York into the Canadian province of Ontario, Aug. 18. AFP-Yonhap
OTTAWA — Canada's economic growth was flat in July, data showed on Tuesday, in line with expectations and signaling a slower start to the third quarter after a solid growth in the prior three months quarter.
This was after three straight months of positive growth and comes right before a new set of tariffs from the United States hit Canada in August.
Both the goods-producing industries and services-producing industries were largely unchanged in July, Statistics Canada said. The good-producing sectors contribute roughly a quarter of the gross domestic product.
Among the goods-producing industries, the manufacturing sector decreased by 0.9 percent in July, posting its first decrease in four months. This was primary led by a decline in activity at petroleum refineries which was down 6.2 percent in July.
Mining, quarrying and oil and gas extraction also posted a decline of 0.5 percent, down for the second month in a row, StatsCan said.
However, utilities and constructions sectors grew by 1.7 percent and 1.3 percent respectively, offsetting most of the decline, the statistics agency said. The construction sector rose for a fourth consecutive month.
Among the services-producing industries, retail trade shrunk by 1 percent and wholesale was down 0.4 percent in July. The wholesale trade category was among the biggest contributors of growth in June.
Professional, scientific and technical services rose 0.3 percent in July, its largest monthly growth rate since in the last 20 months. Real estate, rental and leasing category grew by 0.2 percent in July, with real estate expanding for the sixth consecutive month.
An advanced estimate from Statistics Canada showed that the economy was likely to post a rebound in August with a monthly growth rate of 0.2 percent. The growth will primarily be led by higher output in mining and quarrying and retail trade, StatsCan said.
The Bank of Canada has forecast an annualized growth of 1.5 percent in the third quarter.
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