Canada’s GDP expanded 0.2% mom in July, beating expectations of 0.1% and marking the first increase in four months. The rebound was driven primarily by goods-producing industries, which rose 0.6% mom after three straight months of contraction, with every sector in the grouping recording gains.
Services output was more subdued, rising just 0.1% mom as wholesale trade and real estate contributed modestly while retail trade slipped. In total, only 11 of 20 industrial sectors posted growth.
Looking ahead, advance estimates suggest GDP was flat in August, with gains in wholesale and retail offset by declines in resource extraction, manufacturing, and transport.
