Canada's Economy Slows Down After Spring Surge

The Canadian economy has slowed down in its third quarter after a strong spring surge. According to Statistics Canada's preliminary estimate, real gross domestic product (GDP) expanded by only 0.2% in August.

This follows flat growth in July and a revised up monthly growth in June to 0.4%. Economists surveyed by Bloomberg had expected the economy to remain flat in July.

The slowdown is attributed to decreases in oil and gas extraction, which were partially offset by increases in mining and quarrying. The construction sector rose by 1.3%, driven by a new hospital project in Ontario, while utilities increased by 1.7% due to high electricity demand during the heat wave.

However, manufacturing fell by 0.9%, with a 5.7% decrease in petroleum and coal product manufacturing contributing to the contraction. The mining, quarrying, and oil and gas extraction sector also declined by 0.5%.