Canada's Economy Hits Pause Button as Growth Stalls in July
Economic growth in Canada stalled in July due to declines in various sectors, but analysts are not alarmed by this development. According to Statistics Canada, real gross domestic product was essentially unchanged in July, with strength in construction and utilities offsetting weakness elsewhere in the economy.
TD Bank economist Marc Ercolao noted that some of the month's declines were due to one-off factors such as production disruptions. He attributed this 'broader volatility' to Canada's economic growth pattern since last year.
The construction sector, however, showed a 1.3% gain in July, marking its fourth consecutive month of growth after declines in late 2025 and early 2026. Non-residential building construction saw its best month since the start of 2022, primarily due to activity around a new hospital building in Toronto.