Canada GDP Growth Stalls in July Amid US Tariff Uncertainty
Canada's economic growth remained flat in July, according to recent data from Statistics Canada. The stagnation follows three consecutive months of positive growth and coincides with a new round of US tariffs on Canada that took effect in August.
The goods-producing sectors, which account for about one quarter of the country's GDP, saw manufacturing decline 0.9% in July due to lower activity at petroleum refineries, while mining and oil extraction fell 0.5%. However, utilities rose 1.7%, and construction increased 1.3%.
On the services side, retail trade contracted 1%, and wholesale trade dropped 0.4%. Yet, professional and technical services grew 0.3%, marking the strongest monthly pace in 20 months, while real estate expanded for a sixth consecutive month.
An advanced estimate from Statistics Canada indicates that the economy may rebound in August with monthly growth of 0.2%, driven primarily by increased output in mining and quarrying and retail trade.