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Canada’s economy down 0.1% in July, seen up 0.7% in August By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: Truck passes stacks of shipping containers at Port of Montreal in Montreal Quebec Canada on May 17, 2021. REUTERS/Christinne Muschi

By Julie Gordon

OTTAWA, (Reuters) – Canada’s economy suffered a slight dip in July due to decreases in manufacturing, agriculture and construction. However, it is expected to have recovered strongly in August. This would bring overall economic activity back to pre-pandemic levels.

Statistics Canada reported that the Canadian economy fell 0.1% in July. This was less than analysts expected. However, it likely increased by 0.7% in august due to jumps in manufacturing and services. This August estimate is preliminary.

With August’s expected rise, the total economy activity will be about 1% lower than pre-pandemic.

Due to heat waves in the agricultural sector, July’s decline was accompanied by a drop in construction activity. Meanwhile, supply chain problems caused a slump for manufacturers. Statscan stated that this was partly offset by the strong momentum in services.

“While bars and restaurants were rocking again… others parts of the economic were sagging,” wrote Royce Mendes in a note.

Canadian Dollar fell 0.1%, to 1.2687 per greenback or 78.82 U.S.cents.

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