Economic growth stalled again in August, StatCan says

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Strength in mining and quarrying was more than offset by a decline in oil and gas extraction, StatCan said. Oil sands extraction was the biggest drag on growth due to maintenance at some facilities in northern Alberta.

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Maintenance outages at nuclear power plants in Ontario and New Brunswick also dragged down the utilities industry in August.

Retail trade was among the bright spots in the month, posting 1.2 per cent growth and more than making up for a decline in July.

Manufacturing rose for the fifth time in seven months, and the transportation and warehousing industry and finance and insurance sector also saw gains in August.

StatCan’s early estimates for September suggest real GDP declined 0.1 per cent, driven by losses in manufacturing and mining, quarrying and oil and gas extraction.

Despite flat growth in July and August and signs of a decline in September, StatCan’s flash estimates still see real GDP expanding 1.3 per cent on an annualized basis in the third quarter, a slowdown from 3.3 per cent growth in the second quarter.

Because the economy was coming off such a robust month in June, it provided a strong starting point for the third quarter. As a result, despite weakened activity over the three-month period, it still produces positive annualized growth when compared to the second quarter’s average.

StatCan will provide its official quarterly estimates for the third quarter next month when it reports the September GDP figures.

The latest economic data comes two days after the Bank of Canada raised its benchmark interest rate by a quarter point to 2.5 per cent, the first hike in more than three years.

The central bank also revised up its expectations for growth on Wednesday. Monetary policymakers are expecting growth in the third quarter ended up at two per cent on an annualized basis, up from 1.5 per cent in its July forecasts.

This report by The Canadian Press was first published Oct. 30, 2026.

Craig Lord, The Canadian Press