Toronto 
Canada’s economy showed little movement in August, with growth in retail sales and manufacturing offset by declines in wholesale trade and government activity.
According to Statistics Canada, real gross domestic product (GDP) was essentially unchanged for the second consecutive month. Only nine of the country’s 20 industrial sectors recorded growth.
And September may not bring much improvement.
Preliminary estimates suggest the economy contracted by 0.1% in September, leaving third-quarter growth at just 0.3%. Both figures are subject to revision when official data is released on November 30.
Canadians returned to stores
Retail trade was one of August’s bright spots, expanding 1.2% after declining in July.
Motor vehicle and parts dealers led the rebound with 1.8% growth. Food and beverage retailers gained 1.3%, while general merchandise stores rose 1.5%.
Manufacturing also improved, growing 0.3%. Machinery production jumped 3.8%, while petroleum refining increased 4.2% as facilities resumed operations following maintenance.
However, motor vehicle and parts manufacturing fell 5.8%, partly reflecting an extended summer shutdown at a major assembly plant.
Wholesale trade and government activity declined
Wholesale trade dropped 1.4%, making it the largest drag on economic growth. Motor vehicle and parts wholesalers experienced a particularly steep 4.4% decline.
The public sector contracted 0.2%, its first decline in six months. Federal government administration, excluding defence, fell 2.1% as work associated with the 2026 Census wound down.
Oil production falls while mining rebounds
Oil and gas extraction declined 1.2%, including a 2.1% drop in oil sands production linked to maintenance in northern Alberta.
Meanwhile, potash mining surged 12%, and other metal ore mining jumped 56.2% as operations in northern Saskatchewan resumed following disruptions.
Rail transportation increased 3.6%, helped by higher wheat shipments, while air transportation grew 1.3%.
For September, Statistics Canada reported that “real GDP decreased 0.1%” based on advance information.
The official September and third-quarter GDP figures are scheduled for release on November 30, providing a clearer picture of Canada’s economic performance heading into the final months of 2026.
