Canadian economy shrank in August

CBC News

Canada’s economy contracted for the first time in six months, with August figures showing it shrank 0.1 per cent compared to July.

Statistics Canada said Wednesday that the service sector was unchanged, but led by declines in mining, oil and gas, and manufacturing, the goods-producing sector shrank by 0.5 per cent.

Economists had been expecting a slight gain of 0.2 per cent overall.

With the poor showing, Canada posted its slowest annual pace of growth in more than two years.

Broad-based but small declines

Overall, the data agency noted shrinking output in 10 out of 18 industrial sectors.

“This was no fluke,” said Douglas Porter, deputy chief economist at BMO Nesbitt Burns.

“While some temporary factors weighed on activity in August, the main message here is that the economy is struggling to churn out any growth whatsoever.”

He expects a “modest rebound” for September, but sluggish growth for the rest of the year.

With files from The Canadian Press


Canada economy shrinks in August as oil, mining slump


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