Canadian Economy Hits Brakes After Three Months of Growth
Canada's economy has hit a roadblock, posting flat growth in July after three months of expansion. The country's real gross domestic product (GDP) remained unchanged month over month, according to flash estimates.
The slowdown was led by decreases in the manufacturing and mining sectors, as well as quarrying and oil and gas extraction, which contracted by 0.9% and 0.5%, respectively.
Gains in construction, up 1.3%, and utilities, up 1.7%, were unable to offset these contractions. Retail and wholesale trade also experienced declines, weighing on overall economic growth.
Only 10 out of 20 subsectors expanded in July, a sign that economic growth may have slowed in the third quarter. Economists expect growth to slow due to escalating trade tensions with the US, following a second-quarter rebound.