Canada’s GDP Stalls for Second Month in August, Statistics Canada Reports

Statistics Canada released its early estimate for August on 30 October, finding that Canada’s real gross domestic product was essentially unchanged from July. The data mark the second month in a row that the economy has stalled, after a modest 0.1% decline in July. The agency attributes the flat performance to weakness in the public sector and a 1.4% fall in wholesale trade, even as retail trade rebounded and manufacturing output rose in five of the last seven months.

Sector performance

Manufacturing output grew in five of the last seven months, but the sector still posted a modest gain in August, helping to offset a decline in July. Transportation and warehousing also posted growth, driven by a solid month on the railways that lifted the sector. In contrast, wholesale trade contracted across most subsectors, falling 1.4% in August. Public administration saw widespread contractions as work on the 2026 census wound down, further dampening the overall picture. The decline in public‑sector activity was a key factor in the economy’s lack of growth.

Outlook for September

Early estimates from Statistics Canada suggest that real GDP may have slipped 0.1% in September, reflecting losses in manufacturing and in the mining, quarrying and oil‑and‑gas extraction sectors. The agency’s September outlook indicates the economy could move into negative territory if the current trends continue. The report, first published by The Canadian Press on 30 October, highlights that the rebound in retail trade was not enough to offset the broader weakness in wholesale trade and public‑sector activity.