Statistics Canada says real GDP was essentially unchanged in August, after stalling for a second month.
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Statistics Canada said real gross domestic product was essentially unchanged in August, marking a second consecutive month of economic stagnation.
The agency reported wholesale trade fell 1.4 per cent in the month as most subsectors contracted. It said motor vehicle and vehicle parts wholesalers faced their first decline in seven months, citing lower vehicle imports and weaker manufacturing activity within that subsector.
Work to prepare the 2026 census was also winding down in August, contributing to widespread contractions in public administration.
Strength in mining and quarrying was more than offset by a decline in oil and gas extraction. Statistics Canada said oil sands extraction was the biggest drag on growth, attributing it to maintenance at some facilities in northern Alberta.
The utilities industry also declined in August, with Statistics Canada pointing to maintenance outages at nuclear power plants in Ontario and New Brunswick.
Retail trade was among the bright spots, rising 1.2 per cent in August and more than offsetting a decline in July. Manufacturing rose for the fifth time in seven months, while transportation and warehousing, and finance and insurance also posted gains.
Statistics Canada’s early estimates for September indicated real GDP declined 0.1 per cent, driven by losses in manufacturing, mining and quarrying, and oil and gas extraction.
Despite flat growth in July and August and signs of a September decline, Statistics Canada’s flash estimates still show real GDP expanding at an annualized pace of 1.3 per cent in the third quarter, down from 3.3 per cent growth in the second quarter.
Statistics Canada said it will release its official quarterly estimates for the third quarter when it reports the September GDP figures next month.
The latest economic data comes two days after the Bank of Canada raised its benchmark interest rate by a quarter point to 2.5 per cent, its first hike in more than three years. Monetary policymakers also revised their expectations for third-quarter growth to 2.0 per cent on an annualized basis, up from 1.5 per cent in its July forecast.
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