Canadian economic growth accelerates sequentially in July

The Canadian economic growth continued to accelerate. On a month-on-month basis, the GDP grew 3 percent in July. The rise was historically elevated, but the “rebound” phase seems to be coming to an end, noted TD Economics in a research report.

All 20 industries recorded rises in July. Markedly, output in agriculture, utilities, finance and insurance and real estate rental and leasing sectors surpassed pre-pandemic levels in July.

Overall, goods-producing industries rose 3.2 percent sequentially, driven by manufacturing industry, which saw a rise of 5.9 percent for the month. Still, the level of activity was 6 percent below what it was in February. Both durable and non-durable manufacturing output rose in July. Transportation equipment manufacturing was the main sector driving growth in the manufacturing industry, rising 16.6 percent in July. Behind this rise was strong growth in motor vehicle and motor vehicle parts manufacturing where businesses continued to increase production to meet consumer demand.

On the services front, the overall industry grew 3 percent sequentially in July. Accommodation and food services rose 20.1 percent, the third straight month where growth exceeded the 20 percent mark. Food services and drinking places rose 17.6 percent on the month as restaurants, pubs, bars continued to reopen in July.