WS Investor
29 Sep 2026, 18:43
Canada GDP Stalls in July, August Estimate Points to Modest Rebound
Canada’s economy was unchanged in July, with monthly GDP growth at 0.0%, matching market expectations but slowing from a 0.3% increase previously.
The flat reading suggests economic momentum weakened at the start of the third quarter, with overall activity failing to expand during the month.
An early estimate for August was more encouraging, however, pointing to 0.2% monthly growth. If confirmed, that would suggest the economy regained some momentum after July’s pause.
For markets, the mixed picture may keep expectations for Bank of Canada policy balanced. The weak July reading supports the case for easier policy, while the August rebound estimate suggests the economy is not deteriorating sharply.
Canada’s economy was unchanged in July, with monthly GDP growth at 0.0%, matching market expectations but slowing from a 0.3% increase previously.
The flat reading suggests economic momentum weakened at the start of the third quarter, with overall activity failing to expand during the month.
An early estimate for August was more encouraging, however, pointing to 0.2% monthly growth. If confirmed, that would suggest the economy regained some momentum after July’s pause.
For markets, the mixed picture may keep expectations for Bank of Canada policy balanced. The weak July reading supports the case for easier policy, while the August rebound estimate suggests the economy is not deteriorating sharply.
