Canadian GDP Edges Lower in July 2021

Statistics Canada (StatsCan) reported today (10-1-21) the real gross domestic product (GDP) in Canada edged lower -0.1% in July. This follows a 0.6% increase in June. Total economic activity in July was approximately -2% below the pre-pandemic level of February 2020.

Overall, 13 of 20 industrial sectors were up, led by a second strong monthly increase in the accommodation and food services sector. However, these increases were more than offset by declines in agriculture, utilities, manufacturing, and wholesale trade.

Forestry and logging were down -3.9% in July, as forest fires in British Columbia’s interior and in northwestern Ontario affected production activities. Construction contracted -0.9% in July, a third consecutive decline, largely as a result of lower residential building construction. Residential building construction fell -2.7% in July, a third straight monthly decline, after reaching a record high in April. Almost all types of residential buildings construction activity were down, led by single-family homes and home alterations and improvements.

Preliminary information indicates an approximate 0.7% increase in real GDP for August. Because of its preliminary nature, this estimate will be revised on October 29, 2021 with the release of the official GDP data for the August reference month.