Canada’s economy shrank in August, reversing nearly all of the growth.
The real gross domestic product by industry fell 0.3 per cent in August, after a 0.3 per cent gain in July.
Goods-producing industries were down 0.6 per cent, marking the fifth contraction this year. Services-producing industries slipped 0.1 per cent, the first drop in six months.
The transportation and warehousing sector fell 1.7 per cent as a mid-month strike by roughly 10,000 flight attendants disrupted air travel. Air transportation tumbled 4.6 per cent, the steepest monthly drop since early 2022, while support activities for transportation declined 1.9 per cent. Pipeline transportation was also down 0.7 per cent as natural gas exports to the United States weakened.
Wholesale trade slipped 1.2 per cent, ending a three-month streak of increases. Motor vehicle and parts wholesalers dropped 8.3 per cent, while food, beverage and tobacco wholesalers fell 5.2 per cent, their sharpest fall since late 2022.
The mining, quarrying, and oil and gas extraction sector contracted 0.7 per cent. Drilling and rigging slowed sharply, down 5.0 per cent, and coal mining fell 5.1 per cent. However, oil and gas extraction grew 0.2 per cent, buoyed by higher crude output in Alberta and Newfoundland and Labrador and a small rise in oil sands production.
The utilities sector slid 2.3 per cent to its lowest level since 2018. Hydroelectric generation continued to suffer from drought conditions, with electric power generation, transmission and distribution falling 2.4 per cent for the sixth straight month.
Manufacturing declined 0.5 per cent in August, with durable goods down 0.8 per cent. Machinery and fabricated metal products led the losses, partly offset by a 3.7 per cent rise in primary metals. Non-durables eased 0.2 per cent as food manufacturing fell 1.3 per cent and beverage and tobacco output dropped 4.7 per cent.
Retail trade provided the only relief, climbing 0.9 per cent as motor vehicle and parts dealers rose 2.5 per cent.