The
Canadian economy
expanded by 0.2 per cent in July, the first sign of growth in four months, led by a rebound in goods-producing industries.
Mining and quarrying activity grew by 2.6 per cent in July and oil and gas extraction rose by 0.9 per cent,
Statistics Canada said on Friday.
The manufacturing sector and transportation and warehousing also made gains in July, following contractions in June.
However, an advance estimate for
gross domestic product
showed growth was flat in August, with increases in wholesale and retail trade offset by declines in manufacturing, oil and gas extraction and transportation and warehousing.
Pipeline transportation drove July’s gains in transportation and warehousing and support activities for transportation also rose, driven by the first month of operations at the
LNG Canada facility
in Kitimat, B.C.
The increase in manufacturing activity in July was largely attributed to the auto parts and auto manufacturing sector, but this was mainly due to a combination of
tariffs and seasonal factors.
“July typically sees planned temporary shutdowns at motor vehicle assembly plants in Ontario,” the report said. “However, the impact of these seasonal closures was less pronounced this year due to the continued production slowdown, influenced by factors such as the new tariffs imposed by the United States.”
Primary metal manufacturing contracted by 5.5 per cent in July and iron and steel mill manufacturing recorded its steepest decline since April 2020 during the pandemic, contracting by 19.1 per cent during the month.
Wholesale trade was up for the third consecutive month, with motor vehicle and parts leading the growth and building material also reporting gains.
Retail was down in July, reflecting a drop in consumer spending, with weaker retailing activity for suppliers of food, clothing, books, sporting goods, building equipment and gardening supplies.
The real estate, rental and leasing sector grew for the fourth consecutive month, driven by higher activity by real estate agents and brokers. This was a reflection of rising home resales across the country, including in the Ontario and British Columbia housing markets.
• Email: jgowling@postmedia.com
Canada's economy grows for the first time in four months
2025-09-26 12:41:17
