Canadian GDP Contracts
Modest Rebound Ahead
Canada’s economy took a step back in August, with gross domestic product (GDP) contracting by 0.3%.
Driven by broad-based weakness across both goods and services sectors, has reinforced expectations among leading economists that growth will remain subdued into next year.
Most now believe the Bank of Canada (BoC) is likely to keep rates on hold.
Twelve out of twenty major industries posted declines in August.
TD Economics’ Marc Ercolao said,
- “The mining, oil and gas sector lost some steam.”
- “…manufacturing sector also contributed to the broad-based slowdown.”
- “airline strike activity pushed air transportation down by 4.6%.”
“Much of the downside surprise in August output reflected temporary factors not related to ongoing tariff disruptions,” Abbey Xu, economist at RBC, said.
BMO Economics’ Benjamin Reitzes echoed this view. “…12 of 20 sectors reported a drop in activity. Wholesale was a weak spot…”
Full Read: