Canada’s economy stagnates for second month as September contraction looms

Investing.com -- Canada's economy stagnated for a second consecutive month in August as weakness in wholesale trade and oil and gas extraction offset gains in retail sales and manufacturing, while preliminary data pointed to modest growth in the third quarter. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » Real gross domestic product by industry was unchanged in August from July, with nine of 20 industrial sectors expanding, Statistics Canada said on Friday. The services-producing sector contracted 0.1%, while goods-producing industries grew 0.1%. "Today's data suggested that the Canadian economy was already struggling for momentum even before this week's interest rate hike," CIBC analysts said. The figures suggest Canada's economy maintained modest momentum in the third quarter despite a sluggish end to the summer, with an advance estimate indicating that output declined in September. The economy expanded 0.3% in the third quarter, according to preliminary industry-based estimates. Statistics Canada's advance estimate for September showed real GDP by industry declining 0.1%, with decreases in manufacturing and mining, quarrying and oil and gas extraction partly offset by gains in utilities and wholesale trade. The estimate remains preliminary and will be updated on November 30, when the agency releases official September industry GDP data and its official third-quarter GDP estimate. Retail trade provided a significant boost in August, rebounding 1.2% after contracting in July. Motor vehicle and parts dealers rose 1.8%, while food and beverage retailers increased 1.3%. General merchandise retailers and health and personal care retailers also posted gains. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » Manufacturing output grew 0.3%, marking its fifth increase in seven months. Machinery manufacturing rose 3.8%, while petroleum refinery activity increased 4.2% as some facilities resumed production following unscheduled maintenance in July. However, wholesale trade fell 1.4%, making it the largest drag on economic activity during the month. Wholesale trade in motor vehicles and parts dropped 4.4%, coinciding with lower imports of passenger cars and light trucks and weaker-than-usual vehicle manufacturing activity. Oil and gas extraction declined 1.2%, its third consecutive monthly contraction, as oil sands production fell 2.1% amid maintenance at some facilities in northern Alberta. The broader mining, quarrying and oil and gas extraction sector was unchanged, with stronger output from metal ore and potash mining offsetting the decline. Story Continues Transportation activity offered some support. Rail transportation grew 3.6%, its strongest monthly increase since March 2025, as record wheat production boosted shipments. Air transportation rose 1.3%, extending its growth streak to four consecutive months. Public-sector activity also weakened, with the aggregate covering education, health care and social assistance, and public administration falling 0.2%. Federal public administration declined 2.1% as work related to the 2026 Census continued to wind down. Original Article Canada's economy stagnates for second month as September contraction looms How much further could the ECB raise interest rates? UBS gives its outlook Nasdaq futures tumble; Binance suffers massive hack - what's moving markets View Comments