After a 0.2% decline in June, Canada’s Gross Domestic Product remained unchanged in July.
It was the manufacturing sector that weighed the most on growth in July, according to Statistics Canada. The manufacturing sector recorded a decline of 1.5%, the steepest since April 2021. This is the second consecutive month of decline for this sector. Service sector industries showed a slight increase of 0.1%.
The Canadian economy therefore enters the third quarter of 2023 on a shaky footing. Statistics Canada, however, anticipates a slight increase in GDP of 0.1% in August, a forecast which will be revised on October 31.
In July, the mining sector made up for the decline due to forest fires which had restricted its activity in June. Accommodation and food services show an increase of 2.3%, the largest since January 2023.
The transportation and warehousing sector fell 0.2% in July. Air transportation suffered from poor weather conditions in the east which caused voting cancellations during the Canada Day holiday weekend.
The strike at the port of British Columbia has hampered maritime transport. Large declines in imports from countries other than the United States were recorded in July.
On the other hand, British Columbia’s grain terminals were not affected by the strike, and Canada was able to continue to export its canola, the volume of which doubled in July, and its wheat.
Oil and gas extraction rose 1.5% in July, up for a sixth time in seven months. Oil sands extraction increased 0.8% in July. The growth was largely driven by increased production of synthetic oil in Alberta, with several facilities increasing production.
