OTTAWA (Reuters) – The Canadian economy continued to expand in July and August, clawing back from a steep drop due to the coronavirus pandemic, though the pace of growth slowed through the summer, Statistics Canada data and estimates showed on Wednesday.
Real GDP rose 3.0% in July, in line with analysts’ expectations, but below June gains of 6.5%, as all 20 industrial sectors posted increases.
August GPD, meanwhile, is expected to increase by 1.0%, Statistics Canada said in a preliminary flash estimate.
The economy still remains below pre-pandemic levels.
The Canadian dollar
“While there may be some disappointment with the August growth estimate of 1%, decelerating momentum should be fully expected,” said Benjamin Reitzes, Canadian rates and macro strategist with BMO Capital Markets, in a note.
July’s GDP gains included big increases for the accommodation and food service sectors, which benefited from summer travel, patio service and restaurant reopenings.
All 20 goods-producing sectors posted increases in July, leading to an overall 3.2% monthly increase in those sectors, while the service-producing sector grew by 3.0%.
(Reporting by Julie Gordon and Steve Scherer; Editing by Andrew Cawthorne)
