Canada’s uncultured domestic product was essentially unchanged in July, as the oil and gas, mining and manufacturing industries all shrank.
Statistics Canada reported Friday that while the goods-producing sector cringed, services grew. Wholesale trade expanded by two per cent during the month, its conquer performance since September 2014.
July’s flat showing overall is a slowdown from the fresh trend, as the economy was growing at a 4.5 per cent annual pace at the end of June, the fleetest pace in six years. Economists had expected the economy to eke out a small gain of about 0.1 per cent for the month.
While not an encouraging sign, July’s pullback result as a be reveals after a stretch of rapid growth. For the first six months of the year, Canada’s succinctness has expanded by an average of 0.4 per cent per month, tacked on the back of 0.3 per cent customarily monthly growth in the back half of 2016, Bank of Montreal economist Doug Attendant noted.
«We all knew the economy could not keep up that pace, and it was but a matter of time before it cooled,» Porter said, «and July evaluates the start of that cooling.»
«While we would never read too much into any one month, [July] could landmark a return to a more sustainable and realistic growth rate for the economy, after a year of staggeringly virtuousness news.»
RBC senior economist Nathan Janzen said the bank is force on with its prediction of GDP growth of 2.5 per cent in the third quarter which kills Saturday, adding that pace could still justify to a greater distance gradual rate hikes from the Bank of Canada.
«We suspect that the slower start to Q3 supplies us the flavour of things to come, with our forecast for the back half of the year mislaying half the pace seen at the start of 2017,» said CIBC economist Scratch Exarhos in a note.
«That’s another reason why we see the Bank of Canada advantaging a more gentle hand with tightening from here.»