Canada's Economic Growth Flat in July, Set for Rebound in August

Canada's economic growth was flat in July, according to data released by Statistics Canada on Tuesday. This is in line with expectations and marks a slower start to the third quarter after three straight months of positive growth.

The country's gross domestic product (GDP) showed no change from June, as both goods-producing industries and services-producing industries were largely unchanged. The goods-producing sectors contribute about a quarter of Canada's GDP.

Among the goods-producing industries, manufacturing decreased by 0.9 percent in July, its first decline in four months. This was primarily led by a drop in activity at petroleum refineries, which fell 6.2 percent in July. Mining, quarrying and oil and gas extraction also posted a decline of 0.5 percent for the second month in a row.

However, utilities and constructions sectors grew by 1.7 percent and 1.3 percent respectively, offsetting most of the decline. 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. Professional, scientific and technical services rose 0.3 percent in July, its largest monthly growth rate since the last 20 months.

Statistics Canada also reported an advanced estimate that shows the economy is 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.