Canadian economic activity unexpectedly strengthened by 0.1% in July, driven by strong oil sands production, while gross domestic product was flat. The reading of GDP data in July has brought some relief. Waima so gross domestic product is most likely unchanged in August.
Analysts polled by Reuters had forecast GDP to fall 0.1% in July from June. But it was misguided and the economy strengthened 0.1% in July based on the Statistics Canada report. Statistics Canada said growth in the goods-producing industry managed to offset the decline.
Oil sands extraction jumped 5.1% in July on higher production, partially offsetting a two-month decline. Canada's agriculture sector also helped drive economic growth, with crop production up 7.2%, mainly on wheat and other grains.
Demand for Canadian wheat has increased since the Russian invasion of Ukraine. The retail trade sector contracted sharply in July, falling to the lowest level since December 2021, led by a 7.1% drop in output at gas stations, Statscan reported.
Lodging and food services also contracted in July, again the first decline since January, driven by less activity at bars and restaurants.
The Canadian dollar traded 0.43% lower at 1.3667 against the US dollar.
