Canada’s economy: What the latest GDP report means [Video]

OTTAWA –

Canada’s gross domestic product was unchanged in August before likely expanding by 0.3 per cent in September, data showed on Thursday, indicating the economy missed the central bank’s growth forecast for the third quarter.

The reading for August matched the median forecast of analysts polled by Reuters.

A 1.2 per cent contraction in manufacturing was the biggest drag on the economy in August, Statistics Canada data showed. Retooling and maintenance activities at multiple auto plants contributed to the decline.

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Canada’s goods-producing industries, which include the manufacturing sector, fell to its lowest level since December 2021.

Economic growth has slowed in Canada under the impact of high borrowing costs. The Bank of Canada (BoC) has said it wants the economy to strengthen and has cut interest rates four times in a row to spur growth as …