GDP largely unchanged in July following six months of gains: Statistics Canada

Economic growth in Canada paused in July following a string of gains over six consecutive months, hurt by a slump in the mining and energy sector, Statistics Canada said Tuesday.

OTTAWA — Economic growth in Canada paused in July following a string of gains over six consecutive months, hurt by a slump in the mining and energy sector, Statistics Canada said Tuesday.

Economists had expected a gain of 0.2 per cent, according to Thomson Reuters.

But the federal agency said the real gross domestic product was essentially unchanged in July following gains of 0.5 per cent in May and 0.3 per cent in June.

On a year-over-year basis, the economy was up 2.5 per cent.

BMO Capital Markets chief economist Doug Porter said “the Canadian economy seriously stubbed its toe in July.”

“While some special factors weighed, there were also some helpful one-time events in place as well, so we wouldn’t dismiss the weakness,” Porter said.

The flat month-over-month result overall came as the manufacturing and the public sector posted gains July.

Manufacturing output grew one per cent. Durable-goods manufacturing rose 1.6 per cent, with increases in transportation equipment, computer and electronic products as well as furniture and related products.

The public sector increased 0.5 per cent for the month.

The construction, professional services and retail trade sectors also posted gains.

However, those steps forward were offset by decreases in mining and oil and gas extraction as well as in utilities.

Mining, quarrying and oil and gas extraction fell 1.5 per cent in July, while utilities dropped 2.3 per cent due to lower demand for electricity and natural gas due to cooler weather in some parts of the country.

Statistics Canada also said there were decreases in agriculture, wholesale trade, transportation and warehousing services — as well as arts, entertainment and recreation.

TD Bank senior economist Randall Bartlett said the unexpectedly weak result for the month puts some risk that the third quarter will fall short of the bank’s forecast for around three per cent annual growth, but added he did not see it as beginning of a return to sub-par economic growth.

“Not only is output in the primary industries notoriously volatile on a month-to-month basis but many of the factors that have contributed to Canadian economic momentum recently, notably rising U.S. export demand, remain in place,” Bartlett wrote in a note to clients.

Just Posted

Sport of axe throwing growing in Red Deer

True North Axe Throwing wants sport to be ‘Canadian version of darts’

Optimism remains for Red Deer hospital expansion

Red Deer’s incoming UCP MLAs both have been strong supporters of expansion

RDC cancels championship-winning golf program due to tight finances

Short season, small number of student golfers were also considerations

Fire investigators comb through industrial fire wreckage looking for answers

Industrial building in north Red Deer was completely gutted in Wednesday morning fire

WATCH: An ‘Eggstemely Fun Easter’ at Bower Place in Red Deer

Bower Place mall made sure Red Deer families were able to have… Continue reading

Notre Dame rector: “Computer glitch” possible fire culprit

PARIS — A “computer glitch” may have been behind the fast-spreading fire… Continue reading

Former journalist pleads guilty to robbing two banks in Medicine Hat

MEDICINE HAT, Alta. — A former journalist arrested almost two years ago… Continue reading

Austria fears for three top climbers missing in Banff National Park

BERLIN — Austrian Chancellor Sebastian Kurz said Friday his thoughts are with… Continue reading

As Vancouver fights over 4-20, Seattle’s Hempfest enjoys tolerance, some support

VANCOUVER — They both came from humble beginnings: small protests against marijuana… Continue reading

All eyes on the surging Greens as Prince Edward Island goes to the polls

After a brief provincial election campaign devoid of drama, voters on Prince… Continue reading

North Dakota company where 4 were slain seeks normalcy

MANDAN, N.D. — Camaraderie was so important for the “coffee club” at… Continue reading

Trump blasts ex-advisers who say he tried to stop Mueller

WASHINGTON — A day after celebrating the release of the Mueller report… Continue reading

Sanders claims she didn’t lie, despite Mueller finding

WASHINGTON — President Donald Trump’s spokeswoman Sarah Sanders pushed back Friday against… Continue reading

Most Read