Canada’s growth stalls after four months of growth

Canada’s growth stalls after four months of growth

The results came in below analysts’ expectations.

Canada’s economy stalled in July, following four months of growth, as the country’s mining, quarrying, and oil and gas extraction sectors contracted, Statistics Canada data revealed Tuesday.

A Reuters poll of experts had predicted an increase of 0.1% in July following 0.2% growth in June. Nevertheless, while 12 of the 20 industrial sectors monitored expanded, eight declined, the national statistics agency said.

The Canadian dollar weakened to US 75.24 cents as a result. 

Canada is heading towards a national election on Oct. 21 in which economic issues have played a central role in the political debate. Meanwhile, the Bank of Canada has held interest rates steady since last October.

Statscan said goods-producing industries were down 0.7% in July as outputs from all sectors–with the exception of utilities–fell. Services-producing industries were up for the fifth consecutive month, rising 0.3% as the majority of sub-sectors grew.

Canada’s mining, quarrying, and oil and gas extraction sector dropped by 3.5%, however, the largest decrease since May 2016, the report said. 

Oil and gas extraction (except oilsands) fell 4.7%, the biggest monthly decline in a decade, Statistics Canada said–largely due to a shutdown of some offshore production facilities in Newfoundland and Labrador because of maintenance issues.

The construction sector also declined, dropping by 0.7%.

Manufacturing declined for the second straight month, falling 0.1%, while the transportation and warehouse sector contracted by 0.5% as a result of slower rail transportation. Real estate and related industries increased 4.2%, while the utilities sector grew by 1.5%. Wholesale trade climbed by 1.1%, showing growth for the sixth consecutive month.

2019-10-03T15:02:18+00:00

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