Canada’s economy edged higher in July, with real gross domestic product up 0.2% from June. The return to growth followed three straight monthly declines and was powered by a pickup in goods-producing industries. Services rose modestly. Eleven of 20 major sectors expanded, a breadth that hints at stabilization even as pockets of weakness linger
Mining, quarrying, and oil and gas extraction led the advance. Output in the category climbed 1.4% as every subsector grew.
Oil sands extraction increased 1.2% after facilities completed spring maintenance, and conventional oil and gas extraction rose 0.6%. Non-oil-and-gas mining rebounded 2.6%, paced by metal ores.
Transportation and warehousing also strengthened, rising 0.6% after a June dip. Pipeline transportation posted its biggest monthly gain since 2022, up 2.8%, reflecting higher flows of crude oil and natural gas.
Support activities rose 1.0%, helped by the LNG Canada terminal in Kitimat, British Columbia, which completed its first full month of operations. Rail transport added 1.1%.
Manufacturing output increased 0.7% and was broadly positive across durable and nondurable industries. Transportation equipment stood out, up 3.2%, as motor vehicle production and parts surged 9.1% and 10.5%, respectively.
Seasonal auto plant shutdowns were less pronounced than usual, and production patterns were shaped by new U.S. tariffs.
The bright spots were offset by a sharp pullback in primary metals, where iron and steel mills tumbled 19.1% amid the tariff shock.
Wholesale trade rose 0.6%, its third straight increase, led by motor vehicle and parts wholesalers.
Building materials wholesalers advanced 2.5% alongside stronger cross-border lumber flows.
Real estate and rental and leasing set another record, up 0.3%, driven by a 3.6% rise in activity at real estate brokerages as home resales improved in major Ontario and British Columbia markets.
Legal services, closely tied to property transactions, ticked up 0.5%.
Consumer-facing sectors were softer. Retail trade fell 1.0% and gave back part of June’s gain. Food and beverage stores weakened, with supermarkets and other grocers slowing.
Apparel stores and recreational goods retailers also contracted. Nonstore retailers helped cushion the decline with a 2.4% increase.
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Tourism and dining offer a counterpoint. See [Canada tourism GDP rises 1.3% as domestic travel powers Q2] and [Canada restaurant sales extend gains in July; prices up 3.2%] for signs of resilient travel demand and ongoing food service momentum despite higher prices.
The sector mix left the economy looking more balanced than earlier in the summer. Goods producers collectively rose 0.6% in July after three months of contraction, while services gained 0.1%.
On a contribution basis, manufacturing, mining, wholesale trade, real estate, and transportation made the largest positive marks, while retail subtracted from the monthly change.
Statistics Canada’s preliminary read for August points to essentially no change in real GDP, as renewed declines in mining, manufacturing, and transportation offset increases in wholesale and retail. The estimate will be finalized at the end of October.
The July details sketch an economy still leaning on energy, autos, and housing-related services.
Higher pipeline throughput and a manufacturing pickup tied to motor vehicles helped offset consumer caution at storefronts.
Real estate activity continues to add a small but steady lift as resales recover from earlier lows, although any sustained housing boost will depend on affordability, financing costs, and local supply.
Meanwhile, the steel downturn underscores how trade policy can quickly reorder industrial output, a theme that bears watching through the fall reporting cycle.
