Canada’s economy recorded no growth in July, according to Statistics Canada data released Tuesday, marking a slowdown after three consecutive months of expansion.
The data showed that both goods-producing and services-producing industries were broadly unchanged.
Manufacturing and retail weaken
Manufacturing output declined 0.9% in July, its first monthly decline in four months. Petroleum refinery activity dropped 6.2%.
Mining, quarrying and oil and gas extraction fell 0.5%, marking a second consecutive monthly decline.
Retail trade decreased 1%, while wholesale trade fell 0.4%.
Other sectors provided some support. Construction grew 1.3%, while utilities increased 1.7%.
August may show a modest rebound
Statistics Canada’s preliminary estimate suggests economic activity increased 0.2% in August.
The potential rebound was expected to be supported by mining and retail activity.
The Bank of Canada has forecast annualized third-quarter growth of 1.5%.
The economic figures come as Canada faces continued uncertainty around trade with the United States.
Why the data matters
Canada’s economic performance is closely watched by households, businesses and the Bank of Canada because weaker activity can influence employment, interest rates and consumer spending.
The latest figures therefore provide an important snapshot of the economy as the country navigates trade uncertainty and changing interest-rate expectations.
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