Canada: Monthly GDP growth rebounds in July
September 30, 2016
In July, GDP grew a strong 0.5% over the previous month in seasonally-adjusted terms. The figure followed the 0.6% increase recorded in June and overshot market expectations of a 0.3% rise. According to Statistics Canada, the reading mainly reflected an increase in the mining, oil and gas extraction sector, which includes non-conventional oil extraction, as oilsands output returned to normal levels following the Fort McMurray wildfires that forced a halt in production. Excluding energy, the data agency said July’s GDP grew by 0.1% from the previous month. In addition, both the manufacturing and services sectors expanded in July.
On an annual basis, GDP rose 1.3% in July, an acceleration from June’s 1.2% expansion. The overall trend improved with the annual average variation in GDP inching up from 1.0% in June to 1.1% in July, which marked the highest print in nine months.
Author: Luis Lopez Vivas, Economist