Canada's Economic Growth Stalls in July, Predicted Rebound in August

Canada's economic growth stagnated in July, according to data released by Statistics Canada. The country's economy grew at a rate of 0% in July, which is in line with expectations.

The slowdown comes after three consecutive months of positive growth, and just before the US imposed new tariffs on Canadian goods in August. The manufacturing sector decreased by 0.9% in July, its first decline in four months, driven mainly by a drop in petroleum refinery activity, which fell 6.2%.

However, other sectors such as utilities and construction showed growth, with increases of 1.7% and 1.3%, respectively. Professional services also rose 0.3% in July, its largest monthly increase since the last 20 months.

Statistics Canada predicted that the economy will rebound in August, growing by 0.2%. The growth is expected to be driven by increases in mining and quarrying, as well as retail trade. The Bank of Canada has forecast an annualized growth rate of 1.5% for the third quarter.