Canadian Economy Hits Speed Bump in July

Canada's economy stalled in July, marking the end of three consecutive months of growth. According to Statistics Canada data released on Tuesday, gross domestic product was unchanged from June, matching economists' expectations.

The stagnation followed a solid expansion in the previous three months and came just before a new round of U.S. tariffs took effect in August. The weakness in manufacturing, mining, and trade pointed to a softer start to the third quarter ahead of the tariffs.

Manufacturing output fell 0.9% in July, its first monthly decline in four months, with a 6.2% contraction in petroleum refineries offsetting gains in some other manufacturing industries. Mining, quarrying, and oil and gas extraction also weakened, falling 0.5% for the second consecutive month.

However, construction provided some support, rising 1.3% for a fourth straight month, while utilities output increased 1.7%. Despite the mixed services activity, with retail trade falling 1% and wholesale trade declining 0.4%, the July stagnation was largely driven by weakness in goods-producing industries.