OTTAWA — The pace of economic growth in Canada slowed in August, Statistics Canada said Friday as the economy crept ahead 0.1 per cent.
The increase for the month was smaller than the 0.4 per cent addition in June and 0.3 per cent growth in July, but matched the expectations of economists, according to Thomson Reuters.
“After the strong rebound in June/July, it’s back to reality for the Canadian economy now,” CIBC economist Andrew Grantham said in a note.
“And that reality appears to be very modest growth.”
The growth was mainly a result of gains in retail trade, manufacturing, mining, quarrying, and oil and gas extraction.
Retail trade rose 0.6 per cent for August, while both the manufacturing and the mining, quarrying, and oil and gas extraction sectors each grew by 0.4 per cent.
The arts and entertainment sector decreased 0.9 per cent in August, following a 6.9 per gain in June and a 2.0 per cent decline in July.
Statistics Canada said the increase in June was largely attributable to the FIFA Women’s Soccer World Cup held in Canada while July and August were helped by other sporting events including the Pan-American Games in Toronto.
The finance and insurance sector fell 0.2 per cent in August.
The Canadian economy contracted in each of the first five months of the year before turning around in June and returning to growth.
The Bank of Canada recently revised its forecast for the third quarter to show the economy is expected to grow at an annual pace of 2.5 per cent before slowing in the fourth quarter to an annual pace of 1.5 per cent.
The central bank has cut its key interest rate twice this year in an effort to boost the economy, which was hit hard by a drop in the price of oil last year.