GDP grew by 0.3 per cent in July: Statistics Canada

OTTAWA — The Canadian economy grew more than expected in July, helped by a continuing rebound in the oilsands following earlier slowdowns related to maintenance and forest fires.
Statistics Canada said Wednesday real gross domestic product grew 0.3 per cent in July, topping the 0.2 per cent growth economists had expected according to Thomson Reuters.
However, the federal agency revised its result for June lower to show growth of 0.4 per cent compared with an initial reading of 0.5 per cent growth.
The growth for July follows a weak start to the year that saw 2015 start with five consecutive months of contraction in the economy.
However, growth in June broke the streak of weakness and many economists expect the economy to perform better in the second half of the year.
BMO senior economist Benjamin Reitzes says in a report that GDP growth for the third quarter is tracking on a range of 2.5 per cent to 3.0 per cent range.
“The back-to-back gains in GDP (in June and July) suggest that the economy rebounded firmly from the very weak first half of 2015,”
Leading the growth in July was the mining, quarrying, and oil and gas extraction sector which posted growth of 2.9 per cent for the month.
Non-conventional oil extraction, which includes the Alberta oilsands, grew 9.1 per cent, following a 7.0 per cent gain in June. In the months of April and May, the sector was affected by maintenance shutdowns and production difficulties. Conventional oil and gas extraction was up 0.8 per cent in July compared with June.
Manufacturing output rose 0.6 per cent in July, while the finance and insurance sector rose 0.8 per cent for the month.
Wholesale trade fell 0.4 per cent for July due to drops in farm products, petroleum products and miscellaneous products, while retail trade rose 0.2 per cent, helped by the auto sector and clothing and clothing accessories stores.
The arts and entertainment sector fell 1.9 per cent in July, following a 6.8 per cent increase in June due to the FIFA Women’s Soccer World Cup hosted by Canada.