Canada's Economy Records Zero Growth for Second Consecutive Month

Statistics Canada reports stagnant economic output in August, with preliminary estimates suggesting a further contraction in September.

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OTTAWA — Canada's economy remained unchanged in August 2026, marking a second consecutive month without growth in real gross domestic product.

Statistics Canada reported that improvements in retail trade, manufacturing and construction were offset by weaker wholesale trade and public administration activity.

Retail trade expanded by 1.2%, while manufacturing increased by 0.3%. However, service-producing industries declined by 0.1%.

An advance estimate indicated that GDP may have contracted by 0.1% in September, subject to revision when complete data become available.

The figures point to continuing economic challenges involving productivity, investment, consumer demand and sector-specific performance.

Economic analysts will closely examine upcoming employment, inflation and GDP releases for evidence of either renewed expansion or prolonged weakness.