The Canadian economy receded in July for the first time in nearly a year, according to a Statistics Canada report published Thursday.
The report said real gross domestic product fell 0.1% in July, which represents the first monthly decline since August 2009 following a relatively strong recovery from the recession.
The nation’s manufacturing, retail, wholesale trade, construction and forestry industries all posted declines.
In manufacturing, GDP fell 0.7% in July as 11 of the 21 major groups in that sector retreated. Construction and real estate also saw declines.
Construction declined 0.5% as residential building construction fell 2%. Real estate agents felt the squeeze on their end as well.
“The home resale market fell significantly for a third consecutive month, which led to an 8% decrease in the output of real estate agents and brokers,” Statistics Canada reported. “The output of this industry stood at about two-thirds of its level recorded at the beginning of 2010.”
Retail trade fell 0.5% in July after a 0.7% gain the month before, while forestry and logging receded 4.6%.
But not every industry took a hit.
Canada’s mining sector showed a 1.1% growth in GDP in July after receding in June, and the finance and insurance sectors grew 0.1% in July as well.
Paul Ferley, assistant chief economist with RBC Economics, said Thursday’s news was “disappointing but not unexpected.”
“With employment growth remaining robust during August 2010, we do not assume that this declining activity will persist,” Farley said in a statement. “As well, various policy actions, such as the July 1 introduction of the HST, may have advanced activity into the first half of the year at the expense of activity in July.”