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Economy Grows 0.1% In July

By Brad Perry Sep 29, 2022 | 12:02 PM

Canada’s economy saw slight growth in July, according to new figures from Statistics Canada.

Real GDP grew by just 0.1 per cent, similar to what the nation’s economy saw a month earlier.

Growth in goods-producing industries was partially offset by a decline in services-producing industries, according to the agency’s monthly report.

Mining, quarrying and oil and gas extraction expanded 1.9 per cent in July, following slight declines in the previous two months.

Oil sands extraction increased strongly in July by 5.1 per cent. An increase in synthetic oil production coupled with a record level of production of marketable crude bitumen in Alberta contributed to most of the growth.

The agriculture, forestry, fishing and hunting sector also rose in July by 3.2 per cent. Crop production expanded by 7.2 per cent, driven mainly by an increase in other grains and wheat.

An expected rebound in wheat production, coupled with the conflict in Ukraine and stronger demand for Canadian wheat, led to a strong increase in export volumes.

The manufacturing sector contracted 0.5 per cent in July, marking the third decline in the past four months. An increase in non-durable goods manufacturing was more than offset by a decrease in durable goods manufacturing.

Wholesale trade also contracted 0.7 per cent in July, down for the fifth time in the past six months.

Personal and household goods contributed the most to the decline, mainly due to a drop in textile, clothing and footwear wholesaling. Building materials and supplies also saw a notable decline.

An increase in the machinery, equipment and supplies subsector partially offset the overall decline in the wholesale trade sector.

Retail activity also shrank 1.9 per cent in July, falling to the lowest level since December of last year. Among the widespread declines, the largest was recorded in the gasoline station and food and beverage store subsectors.

Output at gasoline stations dropped 7.1 per cent in spite of declines in prices amid downward pressure from ongoing concerns related to slower global economic growth and lower global demand for crude oil.

Accommodation and food services contracted for the first time since January, down one per cent. Food services and drinking places mainly drove the decline, which was tempered by a rise in the accommodation services subsector.

You can view the full report online by clicking here.


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