Canada’s economy likely stalled by summer’s end, StatCan says

The Canadian system managed to eke retired maturation contempt nan effect of raging wildfires successful July, Statistics Canada said Friday, but early estimates for August were little rosy.

Canada’s existent gross home product was up 0.2 per cent successful July, StatCan said, a notch supra economists’ expectations. That boost was owed mostly to services-producing industries successful nan month, including nan nationalist sector.

Retail waste and acquisition posted nan largest jump successful July, pinch a afloat percent constituent of maturation marking nan largest summation successful nan assemblage since January 2023. Gains successful activity astatine centrifugal vehicles and parts dealers successful nan period much than offset declines successful June erstwhile a method glitch disrupted income astatine dealerships.

Wildfires were impacting respective industries successful July, however, pinch warehousing and proscription seeing its 2nd consecutive monthly contraction. Some obstruction proscription was forced to shutdown astatine nan extremity of nan period amid wildfires done Jasper National Park and nan Rocky Mountains, nan agency noted.

Wildfires besides shuttered robust ore mines successful parts of Labrador and Northern Quebec, and disrupted nan summertime tourer play successful Western Canada.

Looking up to August, StatCan said it projected existent GDP was fundamentally unchanged successful nan period acknowledgment to much declines successful manufacturing, proscription and warehousing. Early estimates for August will beryllium revised astatine nan extremity of October.

The latest figures for August and July travel aft Statistics Canada reported nan system grew 2.1 per cent connected an annualized ground successful nan 2nd quarter.

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The Bank of Canada’s latest forecasts telephone for annualized maturation of 2.8 per cent successful nan 3rd quarter, but economists and nan cardinal slope itself person precocious warned that existent output successful nan play whitethorn extremity up softer than first expected.