Canada’s GDP remained stagnant in August after remaining unchanged in July, according to Statistics Canada.
The statistics agency reported on Oct. 30 that the country’s economy did not grow in August, falling short of the its projection of 0.2 percent growth. StatCan said out of the 20 industrial sectors, nine of them expanded that month.
There was a 1.8 percent increase in motor vehicle and parts sales, while general merchandise retailers saw a 1.5 percent rebound, and food and beverage retailers saw growth of 1.3 percent. Additionally, Canada’s manufacturing sector rose by 0.3 percent in August, with machinery manufacturing leading the way with 3.8 percent growth.
However, this growth was tempered by a 1.4 percent decline in wholesale trade due to “widespread contractions across most subsectors.” Motor vehicle parts and accessories wholesalers saw a 4.4 percent contraction, which StatCan said was due to lower imports of passenger cars and light trucks, as well as “weaker than usual motor vehicle manufacturing activity.”
Educational services, healthcare and social assistance, and public administration also fell by 0.2 percent in August, which was the first decline in six months. Most of this decline was due to the federal government public administration contracting by 2.1 percent, according to the statistics agency.
The mining, quarrying, and oil and gas extraction sector remained virtually unchanged in August. Mining and quarrying saw a 4.9 percent gain, with potash mining rising by 12 percent following a 7.8 percent decline in July. Oil and gas extraction decreased by 1.2 percent, falling for the third month in a row.
StatCan said its advance information for September suggests that Canada’s economy contracted by 0.1 percent, with decreases in manufacturing, mining, quarrying, and oil and gas extraction being partially offset by increases in utilities and wholesale trade. Statistics Canada already reported that the economy lost 68,000 jobs in September after losing 42,000 jobs in August.
The agency said when coupled with data from July and August, the preliminary September data indicated that the economy expanded by 0.3 percent in the third quarter of 2026. The official estimate for the third quarter will be published on Nov. 30.
The United States imposed 50 percent tariffs on $27.6 billion of Canadian goods on Aug. 22 after trade negotiations fell apart, which led Canada to respond with its own counter-tariffs on Sept. 8. Ottawa applied 15, 25, and 50 percent duties to approximately $27.6 billion in American imports.
On Oct. 23, the White House announced it was removing some tariffs on paper products, certain machinery and refrigeration equipment, and packing crates and boxes, while adding new duties on products like certain valves, carpets, and waste products.
