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Canada’s economy grew 0.2 per cent in July, led by strength in manufacturing

The Canadian economy beat economists' expectations of virtually flat growth in July thanks to strength in the manufacturing sector.
The Canadian economy beat economists' expectations of virtually flat growth in July thanks to strength in the manufacturing sector. Chris Young/CP

Statistics Canada says the economy grew by 0.2 per cent in July, boosted by strength in the manufacturing sector. The increase followed essentially no change in the country’s real gross domestic product in June.

Goods-producing industries grew 0.3 per cent, while services-producing industries increased 0.2 per cent.

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Statistics Canada says 12 of 20 sectors gained ground as the manufacturing sector grew 1.2 per cent in the month, its strongest showing since November 2017. Wholesale trade grew 1.4 per cent, while transportation and warehousing services grew 0.9 per cent.

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“Canada still looks to have cooled in the second quarter, but July’s performance suggests that it might have weathered the impact of an oil sands disruption a bit better than we thought,” CIBC World Markets chief economist Avery Shenfeld wrote in a note to clients shortly after the data release.

Analysts had expected a shutdown at Syncrude Canada’s oilsands mine and upgrader complex, which lasted into mid-July, to keep the month’s GDP growth at 0.1 per cent.

– With a file from Erica Alini at Global News

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