Canada's GDP Growth Flat in July Despite Construction Gains

Statistics Canada reported that Canada's gross domestic product (GDP) growth was flat in July, following a strong second quarter for the economy. This result came despite gains in certain sectors such as construction and utilities.

The construction sector saw its fourth consecutive month of growth, with a 1.3% gain in July, driven primarily by activity around a new hospital building in Toronto. Non-residential building construction also experienced its best month since the start of 2022.

In contrast, declines were seen across various sectors including manufacturing, mining, quarrying, and oil and gas extraction, as well as retail and wholesale trade. Manufacturing's 0.9% decrease marked its first drop in four months.

The economy is expected to pick up in the third quarter, with estimates calling for a gain of 0.2% in August, although this figure will be revised next month. The impact of new US tariffs on Canadian goods, which took effect on August 22, may also affect the economy's performance.