Canada economy flat in July, estimated to rebound 0.2% in August

Sep 29, 2026 12:33 (26d ago)

Statistics Canada reported unchanged economic output in July after three consecutive monthly increases, while an advance estimate indicated 0.2% growth in August.
Manufacturing fell 0.9% as petroleum-refinery activity declined 6.2%, while mining, quarrying and oil and gas extraction fell 0.5%.
The Canadian dollar weakened to around C$1.42 per U.S. dollar as Bank of Canada rate-hold expectations strengthened, while the S&P/TSX Composite Index held near 35,500.

Canada's economy was unchanged in July after three consecutive months of expansion, including upwardly revised 0.4% growth in June, while Statistics Canada's advance estimate indicated a 0.2% increase in August. July weakness was concentrated in manufacturing, mining, oil and gas extraction, retail and wholesale trade, while utilities, construction, professional services, real estate, and accommodation and food services grew. The soft data reinforced expectations that the Bank of Canada will hold interest rates, while increased bets on further Federal Reserve increases supported the U.S. dollar. The Canadian dollar weakened to around C$1.42 per U.S. dollar in September, its lowest level in about 12 weeks, and the S&P/TSX Composite Index was little changed near 35,500 as U.S. import restrictions, lower oil prices and weaker energy shares pressured Canadian markets.