Canada July GDP -0.1% versus -0.2% estimate

Canada July 2021 GDP

US Canada GDP for July came in at -0.1 versus -0.2 estimate. That is at down from 0.6% in June (revised from +0.7%). The July level was approximately 2% below the pre-pandemic level of the February 2020. 

Below is a look at the main industry sectors contributions to the percentage change in gross domestic product for the month. 

Accommodation food services added 0.2%. Agricultural and forestry, utilities, manufacturing, and wholesale also attracted -0.1%.

• prior report was revised to 0.6% from 0.7% previously reported
• 13 of 20 industrial sectors were up led by accommodation and food services. The gains however were offset by declines in agriculture, utilities, manufacturing and wholesale trade
• The good news is that the preliminary information indicates a 0.7% increase in real GDP for August. This estimate will be revised on October 29
• service producing +0.4%
• goods producing -1.4%
• food services rose 12.5%. The second double digit growth in a row
• accommodation services rose 21.1% July as domestic and international travel both rose
• transportation warehouse group 1.1% versus 0.8% June with growth in air transportation leading the way
• agricultural, forestry, fishing, and hunting dropped -5.5% as record-setting heat and drought conditions in Western Canada affected national annual crop production estimates. Crop production felt -13.2% in July and reached its lowest level since the fall of 2007 Forster was down -3.9% on the back of a forest fires in British Columbia is interior and in Northwestern Ontario
• utilities felt -4.9% after a 3.6% gain in June.
• Manufacturing fell -1.1% driven by declines and durable goods manufacturing which felt -1.9% (the third decline in four months)
• construction fell -0.9% for its third consecutive monthly decline
• wholesale trade fell -1.9% for its fourth month decline in a row
• public-sector rose 0.4%
• retail trade felt -1.1% food and beverage stores -3.3% and building material and garden equipment and supply dealers -6.5% leading the way to the downside

The good news is that the expectations for August is for a advance and that the decline was at a touch less than expectations.