Canada: GDP expands in July on strong manufacturing
September 30, 2011
In July, GDP increased a seasonally adjusted 0.3% over the previous month, which was above June's 0.2% increase but in line with market expectations. On an annual basis, GDP accelerated from a 2.1% increase observed in June to a 2.3% expansion in July. That said, trend continues to point downwards, with the annual average growth rate edging down from 3.4% in June to 3.2% in July. The solid July print mainly reflected an improvement in manufacturing, which rebounded from a 0.6% contraction in June to a 1.4% increase in July. Furthermore, within service-providing industries, wholesale trade added 1.5% and transportation gained 1.8% in July. Finance, insurance and real estate services, which account for approximately 20% of GDP, expanded 0.1% in July, below the 0.3% increase in June. The Central Bank projects the economy to grow 2.8% this year and 2.6% in 2012.