TORONTO, September 30, 2026 – Data released by Statistics Canada on September 29 shows that Canada’s real gross domestic product was essentially unchanged in July from the previous month, marking a flat start to the third quarter. Goods-producing industries and service-producing industries were both little changed overall, while 10 of the 20 major industrial sectors posted growth.
Construction was one of the stronger-performing sectors in July, rising 1.3 per cent for a fourth consecutive monthly increase. Non-residential building construction grew 2.9 per cent, engineering and other construction activities rose 1.5 per cent, and residential construction increased 0.9 per cent.
Utilities rose 1.7 per cent during the month. Several parts of Canada experienced hot weather in July, leading to higher electricity demand and increased activity in electric power generation, transmission and distribution.
Manufacturing, however, declined after three consecutive months of growth, falling 0.9 per cent in July. Petroleum and coal product manufacturing, machinery manufacturing and food manufacturing all recorded declines to varying degrees. An unexpected shutdown at a refinery in southwestern Ontario also affected the production of gasoline, diesel and jet fuel.
Retail and wholesale trade also declined, offsetting some of the gains in construction, utilities and other sectors. As a result, overall economic activity in July was largely unchanged from June.
In the second quarter of this year, Canada’s real GDP by industry grew 0.9 per cent, following a 0.1 per cent increase in the first quarter. In the second quarter, 17 of the 20 major industrial sectors recorded growth, with mining, quarrying, and oil and gas extraction among the stronger performers.
Compared with the second quarter, economic growth slowed noticeably in July. However, one month of data is not enough to determine the overall performance of the entire third quarter.
Statistics Canada’s preliminary estimate released the same day indicates that real GDP may have grown 0.2 per cent in August. Mining, quarrying and retail trade are expected to have increased, while oil and gas extraction may have declined. Final August data will be released on October 30.
The July figures also mean Canada’s third quarter has so far begun with zero growth. The performance of August and September will provide a clearer picture of the economic trend for the quarter.
（LJI by Yuanyuan）
