Canada’s economy grew 0.1% in July, contrary to expectations of contraction
Canada’s gross domestic product rose 0.1% in July, beating expectations of a decline, as growth in the mining, agriculture and oil and gas sectors offset a contraction in the manufacturing sector.
Statistics Canada reported Thursday that economic output from the oil sands sector rose sharply, up 5.1% in the month. It was a change of direction after two consecutive months of decline.
The agriculture, forestry, fishing and hunting sector grew by 3.2%, driven by an increase in agricultural production.
In contrast, the manufacturing sector fell 0.5%, its third decline in four months.
Wholesale trade fell by 0.7% and the retail sector by 1.9%. This is the smallest production for the retail trade since December.
While the economy grew slightly in July, the data agency’s first look at August figures shows no growth.
Overall, while economists were happy to see the economy growing, the data suggests things are starting to slow down.
“The economy performed better than expected this summer, but the results were still not very encouraging,” said economist Royce Mendes of Desjardins.
“While the data beat expectations today, the numbers haven’t moved the needle enough to see a material market reaction.”