Bank of Canada could deliver bigger rate cut again amid signs economy stalled – National [Video]

The Canadian economy posted flat growth in August, Statistics Canada said Thursday, but there were signs of a rebound stirring in September.

Economists reacting to the news said the “soft” print for real gross domestic product supports calls for another oversized rate cut from the Bank of Canada, but cautioned there’s plenty of data to come before the central bank’s next decision in December.

Goods-producing industries saw their sharpest drop since December 2021 as manufacturing and utilities sectors contracted in the month. Some growth in services, particularly in the finance and insurance and the public administration sectors, offset the drop, StatCan said.

Lockouts in August from CN Rail and Canadian Pacific Kansas City also drove down the transportation and warehousing industry. That followed another sharp downturn in July as Jasper wildfires disrupted national transportation networks.

Overall, 12 of the 20 sectors tracked by StatCan expanded in August.

The agency’s early …