Canada’s economy flatlines for second month in a row

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsEconomyCanada's economy flatlines for second month in a rowWholesale trade was the biggest detractor to economic growthLast updated 10 minutes ago Wholesale trade dragged on growth in August, declining by 1.4 per cent. Photo by JEFF KOWALSKY/AFP via Getty ImagesCanada’s real gross domestic product growth unexpectedly remained flat in August, another sign that economic growth slowed in the third quarter of 2026 after a second-quarter rebound.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountAccording to data from Statistics Canada published on Friday, retail trade bounced back in August and grew by 1.2 per cent month over month, driven by a rebound in motor vehicle and parts dealers. The manufacturing sector also grew by 0.3 per cent, along with rail transportation at 3.6 per cent and the finance and insurance sector at 0.2 per cent.This advertisement has not loaded yet, but your article continues below.However, wholesale trade dragged on growth, declining by 1.4 per cent. The contraction hit most subsectors but was mainly driven by a fall in motor vehicle and parts sales from lower imports of passenger cars and light trucks.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againThe public sector aggregate also weighed on growth, declining 0.2 per cent month over month, along with the utilities sector, which contracted by 0.4 per cent in August because some nuclear power plants in Ontario and New Brunswick underwent maintenance outages.Month-over-month growth in mining, quarrying and oil and gas extraction was flat in August.August’s real GDP data came after the economy experienced flat growth month over month in July and grew by 0.4 per cent in June.Economists had predicted 0.2 per cent growth in August.Flash estimates from Statistics Canada suggest the economy shrank by 0.1 per cent in September, but that number may be revised.Based on the numbers so far, the economy was on track for an annualized growth rate of 1.3 per cent in the third quarter of 2026.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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