UK markets close in 8 hours 10 minutes
  • FTSE 100

    5,603.10
    +20.30 (+0.36%)
     
  • FTSE 250

    17,294.40
    +45.49 (+0.26%)
     
  • AIM

    948.15
    -0.93 (-0.10%)
     
  • GBP/EUR

    1.1072
    +0.0020 (+0.18%)
     
  • GBP/USD

    1.2984
    -0.0004 (-0.03%)
     
  • BTC-GBP

    10,113.29
    -14.68 (-0.14%)
     
  • CMC Crypto 200

    259.61
    -13.08 (-4.80%)
     
  • S&P 500

    3,271.03
    -119.65 (-3.53%)
     
  • DOW

    26,519.95
    -943.24 (-3.43%)
     
  • CRUDE OIL

    37.26
    -0.13 (-0.35%)
     
  • GOLD FUTURES

    1,879.20
    0.00 (0.00%)
     
  • NIKKEI 225

    23,331.94
    -86.57 (-0.37%)
     
  • HANG SENG

    24,606.54
    -102.26 (-0.41%)
     
  • DAX

    11,649.90
    +89.39 (+0.77%)
     
  • CAC 40

    4,601.79
    +30.67 (+0.67%)
     

Canada's GDP grew 3 per cent in July

Jessy Bains
·2-min read
EDMONTON, ALBERTA - AUGUST 28: Construction continues on the LRT - Light Rail Transit through the city centre as photographed on August 28, 2020 in Edmonton, Alberta, Canada. (Photo by Bruce Bennett/Getty Images)
EDMONTON, ALBERTA - AUGUST 28: Construction continues on the LRT - Light Rail Transit through the city centre as photographed on August 28, 2020 in Edmonton, Alberta, Canada. (Photo by Bruce Bennett/Getty Images)

Canadian GDP expanded by 3 per cent in July, as the economic recovery from the effects of COVID-19 continues.

Statistics Canada says it was the third straight month-over-month increase, but the economy remains 6 per cent below its pre-pandemic level.

Growth is also slowing, considering June’s increase was 6.5 per cent.

All 20 industrial sectors were higher.

Some industries faired better than before the pandemic. Agriculture, utilities, finance and insurance, and real estate rental and leasing sectors surpassed February’s levels.

The manufacturing sector grew 5.7 per cent as factories continued to ramp up production. Accommodation and food services jumped 20.1 per cent, the third straight double digit advance.

“But those figures come off a very low base and are still facing the deepest slump versus year-ago levels. With the resurgence in virus cases, the struggles in those sectors could actually deepen further in the near-term,” said Benjamin Reitzes, director, Canadian rates & macro strategist at BMO.

In another sign of slowing growth going forward, Statistics Canada estimates GDP grew by 1 per cent in August.

“Together, the data are consistent with our call for a roughly 46 per cent annualized gain in Q3 GDP, but the slowing in August, coupled with the surge in the virus in recent weeks, suggest a much smaller gain is in store for Q4,” said Avery Shenfeld, chief economist at CIBC World Markets.

For comparison, annualized GDP fell 38.7 per cent in the second quarter — the worst since Statistics Canada started tracking it in 1961.

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

Download the Yahoo Finance app, available for Apple and Android.