Canadian GDP Unchanged for the Second Consecutive Month in August

Statistics Canada (StatCan) reported on Tuesday (10-31-23) that in August, real gross domestic product (GDP) was virtually unchanged for the second consecutive month as factors including higher interest rates, inflation, forest fires, and drought conditions continued to weigh on the economy.

Service-producing industries posted a modest 0.1% gain in August, while goods-producing industries declined 0.2%. Overall, 8 of 20 industrial sectors posted an increase in August.

StatCan reports that advance information indicate real GDP by industry was essentially unchanged in September. Declines in mining, quarrying, oil and gas extraction, and utilities were partially offset by increases in construction and the public sector. Because the GDP estimates for September are preliminary in nature, they will be updated on November 30th with the release of the official GDP by industry data for September.

StatsCan notes that with this advance estimate for September, information on real GDP by industry suggests that Q3 was essentially unchanged. The official estimate for Q3 will also be available on November 30th when the official estimate of real GDP by income and expenditure is released.