Canadian Economy Flat in July as Tariffs Loom

Canada's economic growth remained flat in July, according to Statistics Canada. This follows three consecutive months of growth and comes before new U.S. tariffs hit Canada in August.

The goods-producing industries and services-producing industries were largely unchanged in July. Manufacturing declined by 0.9 percent, its first decrease in four months, due to a 6.2 percent drop in petroleum refinery activity.

However, utilities rose 1.7 percent, and construction increased 1.3 percent for the fourth consecutive month.

Retail trade decreased 1 percent, while wholesale trade fell 0.4 percent. Professional, scientific, and technical services rose 0.3 percent in July, its largest monthly growth rate since the last 20 months.

Statistics Canada forecasted a rebound of 0.2 percent growth in August, led by higher output in mining and quarrying and retail trade. The Bank of Canada predicts an annualized growth of 1.5 percent in the third quarter.