Canada's Economy Hits Brakes Ahead of New US Tariffs

Canada's economy experienced a significant slowdown in July, marking a pause after three consecutive months of growth. The real gross domestic product (GDP) was essentially unchanged during this period, according to Statistics Canada. This development comes just before another round of US tariffs took effect in August, which may have already impacted the Canadian economy.

The manufacturing sector played a major role in the slowdown, with factory output falling 0.9% and petroleum refineries experiencing a decline of 6.2%. Mining, quarrying, and oil and gas extraction also slipped 0.5%, marking a second consecutive monthly decrease.

However, not all sectors were affected by this downturn. Utilities increased 1.7%, while construction advanced 1.3% for the fourth consecutive month. This growth helped to offset some of the weakness in other areas, particularly in resource extraction.