Step Back for Economy in August

Figures released Tuesday morning show the upward mobility for our economy stalled and slipped into reverse two months ago.

Statistics Canada showed Canada's gross domestic shrank by 0.1% in August as declines in oil and gas and manufacturing more than offset small gains in a majority of other industries.

The agency also said that goods-producing industries contracted for the second consecutive month, declining 0.7%.

Manufacturing was a particular culprit, with chemical manufacturing posting its biggest one-month decline in 20 years, and other types of manufacturing being down because of planned maintenance shutdowns.

The service sector, however, eked out a small gain of 0.1%. Canada's service sector has now expanded for 17 months in a row.

It was the first monthly contraction for the economy overall since October 2016.

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