Canadian Real GDP Increases 0.2% in July

On Friday, Statistics Canada (StatCan) reported that Canadian real gross domestic product (GDP) was up 0.2% in July, following little change in June. Despite negative impacts from wildfires on transportation and warehousing and accommodation services, services-producing industries grew 0.2% in July, driven in large part by increases in the retail trade, public, and finance and insurance sectors. Goods-producing industries edged up 0.1%, with the utilities and manufacturing sectors contributing the most to growth within this aggregate. Overall, 13 of 20 sectors expanded in July.

The construction sector declined 0.4% for the second consecutive month and was the largest detractor to growth in July, as most subsectors posted decreases. Nonresidential building construction fell 1.7%, its third decline in four months and the largest contributor to the decline in the sector in July. Industrial and commercial building construction drove the decrease.

Advance information indicates that real GDP was essentially unchanged in August. Increases in oil and gas extraction and the public sector were offset by decreases in manufacturing, transportation, and warehousing. Owing to its preliminary nature, this estimate will be updated on October 31st with the release of the official GDP by industry data for August.