Canadian Real GDP Flat in July

Statistics Canada (StatCan) reported on Friday (9-29-23) that real gross domestic product (GDP) was basically unchanged in July, following a 0.2% decline in June. Service-producing industries inched 0.1% higher, while goods-producing industries declined 0.3%. Overall, out of the 20 industrial sectors reporting, 9 posted increases and 11 posted declines.

The manufacturing sector posted a 1.5% decline and made the largest negative contribution in the July report. It is also the sector’s largest decline since April 2021. StatCan notes that this was the second consecutive monthly contraction for the manufacturing sector. The July decline is largely a reflection of lower inventory formation. Durable manufacturing was down for the fourth time in five months, contracting the most since July 2021 due to broad-based declines across the subsectors.

StatCan reports that advance information indicates real GDP inched 0.1% higher in August. Increases in wholesale trade and finance and the insurance sector were partially offset by decreases in retail trade and the oil and gas extraction sector. Due to its preliminary nature, these estimates will be updated on October 31st.