Canada’s Gross Domestic Product (GDP) remained unchanged in July following eight consecutive months of growth, data released by Statistics Canada showed.
According to the data released on Friday, Canada’s real GDP was essentially unchanged in July as only 11 of 20 industrial sectors grew. Goods-producing industries contracted 0.5% in the month – the first decrease in five months, largely as a result of declines in mining, quarrying and oil and gas extraction and in manufacturing.
Meanwhile, wholesale trade activity rose 2.0% in July, the highest monthly gain since September 2014. Growth was broadly-based across the sector as seven of nine subsectors rose. Leading the growth was a 5.3% increase in building material and supplies wholesaling.
The manufacturing sector, a leading indicator, was down 0.4% in July. The largest contributor to the decline was a 5.6% decrease in the transportation equipment manufacturing subsector. Motor vehicle manufacturing was down 13.5%, in part as a result of changes in vehicle models being produced within Canada.
The finance and insurance sector declined 0.6% in July, its largest decline since April 2015. Depository credit intermediation and monetary authorities declined 1.0% on decreased activity at banking, monetary authorities and other depository credit intermediaries.
The construction sector declined 0.5% in July, after posting one of its largest gains in the last four years in June. Residential construction was down 0.9% as new construction of double and row houses declined, along with housing alterations and improvements. Also, the retail trade sector edged down 0.1% as its 12 subsectors were evenly split between increases and decreases.
On the positive side, the utilities sector was up 1.7% in July. Higher demand for electricity in Western Canada, in order to cope with a hot and dry July, led to a 2.3% gain in electric power generation, transmission and distribution. Natural gas distribution was down 0.9% from lower residential demand.
Real estate and rental and leasing also grew in July, edging up 0.1% following two consecutive months of decline. For the fourth month in a row, activity at the offices of real estate agents and brokers contracted, down 1.5%. Housing resale activity decreased in most markets, led by continued declines in and around the Greater Toronto Area.
