Canadian Economy Stalls Amid Trade Tensions
The Canadian economy experienced flat growth in July, despite gains in construction and utilities sectors. According to Statistics Canada, the real gross domestic product (GDP) was essentially unchanged in July.
TD Bank economist Marc Ercolao noted that stalled growth in July is not alarming and is part of a broader volatility seen in Canadian growth.
The construction sector saw a 1.3% gain, marking its fourth consecutive month of growth after declines in late 2025 and early 2026. Non-residential building construction had its best month since the start of 2022 due to activity around a new hospital building in Toronto.
The utilities sector also experienced strong growth, with a 1.7% surge in electricity generation, transmission, and distribution driven by a July heat wave that increased power demands for cooling.