Canadian Economy Stalls Amid Manufacturing and Trade Weakness

Canada's economy unexpectedly stalled in July, marking a three-month streak of growth. The stagnation was largely driven by weakness in manufacturing, mining, and trade, which pointed to a softer start to the third quarter ahead of new U.S. tariffs.

The gross domestic product (GDP) reading remained unchanged from June, matching economists' expectations. Goods-producing industries, which account for about one-quarter of economic output, were a key drag on overall growth, falling 0.5% in July.

Manufacturing output fell 0.9%, its first monthly decline in four months, with a 6.2% contraction in petroleum refineries offsetting gains in other manufacturing industries.