Canada's Economic Growth Stalls in July, But August Outlook Brightens

Canada's economic growth was flat in July, data from Statistics Canada showed on Tuesday. The stagnant growth came after three consecutive months of expansion and just before a new set of tariffs imposed by the United States were to hit Canada in August.

The manufacturing sector decreased by 0.9% in July, its first decline in four months. This was primarily due to a 6.2% drop in activity at petroleum refineries. The mining, quarrying and oil and gas extraction sector also posted a decline of 0.5%, down for the second month in a row.

However, utilities and construction sectors grew by 1.7% and 1.3% respectively, offsetting most of the decline. The construction sector rose for a fourth consecutive month. Among services-producing industries, retail trade shrunk by 1% and wholesale was down 0.4% in July.

An advanced estimate from Statistics Canada showed that the economy is likely to post a rebound in August with a monthly growth rate of 0.2%. The growth will primarily be led by higher output in mining and quarrying and retail trade, StatsCan said.