Canada GDP Flat in July; August Rebound Estimated at 0.2%

Canada's economic growth stalled in July, with gross domestic product unchanged from June, Statistics Canada reported Tuesday. The flat reading followed three consecutive months of gains and preceded new US tariffs imposed on Canada in August. Both goods-producing and services-producing industries were largely unchanged in July. Manufacturing fell 0.9%, its first decline in four months, led by a 6.2% drop in petroleum refinery activity. Mining, quarrying and oil and gas extraction declined 0.5%, its second straight monthly decrease. Utilities and construction grew 1.7% and 1.3% respectively, offsetting most losses. Retail trade contracted 1%, and wholesale trade fell 0.4%. Professional, scientific and technical services rose 0.3%, while real estate expanded for a sixth consecutive month. Statistics Canada's advance estimate projects 0.2% growth in August, led by mining and retail. The Bank of Canada forecasts 1.5% annualized third-quarter growth. The Canadian dollar traded at C$1.4179 per US dollar, and two-year government bond yields fell 3.1 basis points to 2.567%.