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%.

GDP for Canada
  • 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.

The USDCAD is higher with the price up from 1.2670 to a high of 1.2697. In the process the price has moved back above its 100 hour moving average 1.26858, but stays below its 200 hour moving average 1.2703.

Click here for the full report