Canada’s Economy Stalls in July 2026 After Three Months of Growth

Canada’s economy remained flat in July 2026 after three consecutive months of solid growth, with declines in manufacturing and the oil, gas and mining sectors weighing on overall activity.

According to Statistics Canada, manufacturing output fell 0.9%, while the oil, gas and mining sector declined 0.5%. These declines were offset by gains in construction, which grew 1.3%, and public services, which increased 1.7%.

Statistics Canada’s preliminary estimate suggests the economy could rebound by 0.2% in August. However, Deloitte Canada has lowered its 2027 GDP growth forecast from 2% to 1.6%, while projecting 0.9% growth for 2026.

Deloitte said the impact of U.S. President Donald Trump’s trade war could lead to a significant slowdown in economic growth in the final quarter of 2026 and early 2027, keeping Canada’s GDP on a slower growth path.