Canada’s Economy Stagnates in August; September GDP Seen Shrinking 0.1%

According to Jin10, Canada’s economy stagnated in August after zero growth in July, while Statistics Canada’s preliminary estimate indicated that GDP could contract 0.1% in September. Analysts had expected August GDP to grow 0.2%. The September estimate would bring annualized third-quarter real industry output growth to 1.3%, below the Bank of Canada’s latest forecast of 2%. Declines in manufacturing, mining and quarrying, and oil and gas extraction were the main reasons for the weak performance. In August, growth in retail, manufacturing, and construction was largely offset by declines in wholesale trade and public administration. Statistics Canada said service-sector output fell 0.1%, with a 1.4% decline in wholesale trade as the main drag, while increased activity in goods-producing industries largely offset the service-sector decline.