Canada’s economy may be en route to a more “realistic growth rate” after July’s gross domestic product numbers inched up slightly to 0.1% from June, according to a BMO economist.
“The flat July GDP result represents a rare misstep for the Canadian economy in 2017,” BMO chief economist Doug Porter said in a note to investors after Statistics Canada released new data on Friday (September 29).
“While we would never read too much into any one month, it could also mark a return to a more sustainable and realistic growth rate for the economy, after a year of staggeringly good news.”
Services output was one of the few bright spots for the economy, expanding 0.2% in July to net a 16th straight month of growth.
Meanwhile, the construction industry declined 0.5%, manufacturing declined 0.4%, and mining, oil and gas fell 1.2%.
“Well, that isn't terribly encouraging,” TD Economics senior economist Brian DePratto said in an investor’s note.
“A softer report was to be expected given the impact of auto sector retooling, but in the event, July GDP still disappointed as the pullback in the oil and gas sector added to a generally weak month of activity for goods producing industries.”
