Canadian Economy Shows Resilience Despite Flat Growth

Canada's economy is showing signs of resilience despite flat growth in its latest GDP report. According to Statistics Canada, gross domestic product (GDP) growth was essentially unchanged in July, following a revised 0.4% increase in June.

The data shows that while half of the country's industrial sectors contracted, the other half grew. The biggest drags on growth were manufacturing (-0.9%), retail (-1.0%), and mining, quarrying, and oil and gas extraction (-0.5%).

However, the surge in construction (+1.3%) and utilities (+1.7%) helped offset these declines. Construction's growth was driven by non-residential activity, particularly a single new hospital project in Ontario.

The revisions to previous months' data show that the economy grew 0.1% more than initially reported from January to June 2026, representing around 10% of total growth during this period.