GDP grew 0.2% in July, as economy holds steady
Statistics Canada says real gross domestic product grew 0.2 per cent in July, following essentially no change in June, helped by strength in the retail trade sector.
The agency says the growth came as services-producing industries grew 0.2 per cent for the month.
The retail trade sector was the largest contributor to overall growth in July as it gained one per cent, helped by the motor vehicles and parts dealers subsector, which gained 2.8 per cent.
The public sector aggregate, which includes the educational services, health care and social assistance, and public administration sectors, gained 0.3 per cent, while the finance and insurance sector rose 0.5 per cent.
Canada’s rate of inflation has slowed to two per cent, marking the first time it has hit the Bank of Canada’s target since 2021. The deceleration is also sparking talk about whether more aggressive interest rate cuts will follow.
Meanwhile, goods-producing industries gained 0.1 per cent in July, as the utilities sector rose 1.3 per cent and the manufacturing sector grew 0.3 per cent.
StatsCan’s early estimate for August suggests real GDP for the month was essentially unchanged, as increases in oil and gas extraction and the public sector were offset by decreases in manufacturing and transportation and warehousing.