Canada GDP Flatlines in July and August With September Contraction Signaled

Canada's economy stalled for a second consecutive month in August, following zero growth in July, and Statistics Canada's early data points to a slight contraction in September, capping a sharp deterioration in the third quarter. The back-to-back flat readings, combined with the anticipated September dip, stand in stark contrast to the 3.3% annualized expansion Canada posted in the second quarter of 2026.

The August result came in below Statistics Canada's preliminary estimate of 0.2% monthly growth, with gains in mining and quarrying only partially offsetting declines in oil and gas extraction. The September flash estimate, pointing to a modest contraction, suggests the third quarter as a whole will register only a fraction of the momentum seen in the spring.