Flat July Growth Gives Way to August Rebound in Canada
Canada's economy showed no growth in July, data from Statistics Canada revealed on Tuesday. This was in line with expectations and follows three consecutive months of positive growth.
The decline in economic growth was seen across both goods-producing industries and services-producing industries, which together account for roughly a quarter of the country's gross domestic product (GDP).
The manufacturing sector saw its first decrease in four months, shrinking by 0.9% in July due to a significant drop in activity at petroleum refineries, which fell by 6.2%. The mining, quarrying, and oil and gas extraction sectors also posted a decline of 0.5%, down for the second month in a row.
However, some industries showed growth, including utilities and constructions, which rose by 1.7% and 1.3% respectively, offsetting most of the decline. In services-producing industries, professional, scientific, and technical services saw a 0.3% increase, its largest monthly growth rate in 20 months.
An advanced estimate from Statistics Canada suggests that the economy will likely rebound in August with a monthly growth rate of 0.2%, led by higher output in mining and quarrying and retail trade.