August GDP Growth Disappoints; Q3 Estimate Not Rosy Either

Statistics Canada today released the August GDP figures, showing growth of 0.4% over July. This contrasts with their flash estimate of 0.7% (see below). The August increases was fueled by growth in services-producing industries, which were up 0.6%; goods-producing industries fell 0.1%. In good news for our industry, non-residential building construction grew by 0.4%. Statistics Canada is projecting that the economy will not show any growth in September and that Q3 growth will be 0.5% compared to Q2. Based on this, the annualized Q3 projection is about 2.0%. You can read the full article on the StatsCan website.