Canadian Economy Flatlines in July Amid Sector-Specific Declines

Canada's economy experienced zero growth in July, according to Statistics Canada. The country's real gross domestic product (GDP) was essentially unchanged during the month. Despite gains in construction and utilities sectors, declines across several parts of the economy offset these increases.

The construction sector recorded its fourth consecutive monthly increase with a 1.3 percent rise in July. However, manufacturing contracted during the same period. Mining, quarrying, and oil and gas extraction also fell. Retail and wholesale trade were among the sectors that declined.

These developments come after a stronger second quarter for Canada's economy, with Statistics Canada estimating GDP growth at an annualized rate of 3.3 percent between April and June. Early estimates suggest economic growth could regain some momentum in August, with Statistics Canada projecting a 0.2 percent increase in GDP.