Canada’s economy contracted -0.3% mom in August, a much steeper decline than the expected flat reading, highlighting broad-based weakness across both goods and services sectors.
According to Statistics Canada, goods-producing industries fell -0.6%, marking the fifth contraction this year. Services-producing industries slipped -0.1%, the first decline in six months. The data reinforce concerns that Canada’s growth momentum remains fragile amid trade headwinds and domestic softness.
Looking ahead, advance estimates suggest GDP rose 0.1% mom in September, offering a modest sign of stabilization. Gains in finance, insurance, mining, oil and gas extraction, and manufacturing were partly offset by declines in wholesale and retail trade.
