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Canada monthly GDP unexpectedly flat in July amid slump in oil, gas extraction

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Canada monthly GDP unexpectedly flat in July amid slump in oil, gas extraction

Canada's seasonally adjusted monthly GDP unexpectedly came in flat in July following four consecutive months of growth, as goods-producing industries contracted including the oil and gas extraction sector, data from Statistics Canada showed.

The consensus estimate of economists polled by Econoday was for a 0.1% monthly growth, down from the 0.2% expansion registered in June.

Economic output in goods-producing sectors fell 0.7% in July, with only utilities posting an increase among five subsectors. The mining, quarrying and oil and gas extraction sector contracted 3.5%, marking the steepest fall since May 2016. The construction sector also contracted 0.7% and the manufacturing sector edged down 0.1%.

Excluding mining and quarrying, oil and gas extraction contracted 3.0% and support activities for mining, oil and gas extraction tumbled 11.5%.

Services-producing industries' economic output rose 0.3%, as most subsectors registered an increase. Wholesale trade posted gains for the sixth time in the past seven months, advancing 1.1% in July. Retail trade edged up 0.1%.

On a three-month rolling average basis, Canada's real GDP grew 0.8% in July, matching the same pace of expansion recorded in the three months to June. Real GDP rose 1.3% year over year in July.

In its latest monetary policy decision, the Bank of Canada flagged weaker growth in the second half amid rising global trade tensions, and said it would pay particular attention to global developments and their effect on the outlook for Canadian growth and inflation.