Market Flux Event
Canada GDP Flat in July After Three Months of Growth, August Seen Rebounding 0.2%
Read this in the Market Flux appCanada's economy stalled in July, with Statistics Canada reporting gross domestic product unchanged from the prior month, snapping a three-consecutive-month streak of expansion. June's growth was revised upward to 0.4%, making the July pause more pronounced by comparison. Manufacturing weakness and softening trade were the primary drags, offsetting gains in construction and utilities.
StatCan's advance estimate points to a 0.2% rebound in August, suggesting the stall was temporary. The July data landed ahead of the full impact of U.S. tariffs on the Canadian economy, a factor markets are watching closely as a potential headwind to future growth.
Canadian bond yields slipped following the release, reflecting expectations that soft growth could keep the Bank of Canada on an easing path. TSX futures were nearly flat, indicating equity markets absorbed the data without a sharp reaction.
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