Canada: GDP contracts in August for the first time this year
November 3, 2014
In August, GDP contracted 0.1% over the previous month in seasonally-adjusted terms, which marked a deterioration from the flat growth recorded in July. Additionally, the reading came in below market expectations of zero growth and marked the first decline since December 2013. According to Statistics Canada, the result was driven by a decrease in mining and oil and gas extraction, as well as in manufacturing.
On an annual basis, GDP rose 2.2% in August, which was below July’s 2.5% increase. The overall trend stabilized with the annual average variation in GDP remaining at July’s 2.4% rise.