business
Canada's Economy Flatlines for a Second Straight Month in August
Canada's real GDP was flat in August for a second straight month, Statistics Canada said on Friday.
Key points
- Real GDP showed no month-over-month growth in August or July, after 0.4 per cent growth in June.
- Wholesale trade contracted 1.4 per cent in August, while retail trade grew 1.2 per cent.
- KPMG now predicts 1.5 per cent annualized growth in the third quarter of 2026, slowing to 1.4 per cent in the fourth.
Why it matters. Desjardins expects another 25-basis point rate hike in December, which could lift the key rate to 2.75 per cent and shape the Bank of Canada's next moves.
Statistics Canada said on Friday that real GDP showed no growth in August or July, after 0.4 per cent growth in June. Economists had expected 0.2 per cent growth for August, and flash estimates suggest a 0.1 per cent contraction in September. KPMG's Ali Jaffery said temporary forces dragged on August, while Desjardins expects a 25-basis point rate hike in December.
Latest updates
Canada's Economy Flatlines for a Second Straight Month in August
Canada's real gross domestic product was flat in August for the second month in a row, Statistics Canada said in data published on Friday. The economy recorded no month-over-month growth in either August or July, after expanding 0.4 per cent in June. Economists had expected growth of 0.2 per cent in August, so the reading came in below forecasts. The stall suggests economic growth slowed in the third quarter, following a rebound in the second quarter. Statistics Canada's flash estimates also point to a contraction of 0.1 per cent in the following month, though those figures are preliminary and subject to revision.