{"id":1664332,"date":"2022-09-29T11:08:30","date_gmt":"2022-09-29T15:08:30","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1664332"},"modified":"2022-09-29T11:08:52","modified_gmt":"2022-09-29T15:08:52","slug":"canadas-economy-unexpectedly-grows-in-july-though-momentum-slows","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadas-economy-unexpectedly-grows-in-july-though-momentum-slows\/","title":{"rendered":"Canada\u2019s economy unexpectedly grows in July, though momentum slows"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcanadas-economy-unexpectedly-grows-in-july-though-momentum-slows%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1664332&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Julie Gordon<\/p>\n<p>OTTAWA (Reuters) \u2013     Canada\u2019s economic activity unexpectedly edged up in July, while gross domestic product in August was most likely flat, data showed on Thursday, with the surprise gain seen unlikely to change much for the central bank.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>The Canadian economy grew 0.1% in July, compared with analysts\u2019 forecast for a 0.1% decline, Statistics Canada data showed. Growth in goods-producing industries more than offset the first decrease in services-producing industries since January. <\/p>\n<p>\u201cThe economy fared better than anticipated this summer, but the showing still wasn\u2019t much to write home about,\u201d Royce Mendes, head of macro strategy at Desjardins Group, said in a note.<\/p>\n<p>The slight gain in July and likely lack of growth in August suggest third-quarter annualized GDP growth of about 1%, well below the Bank of Canada\u2019s most recent forecast of 2.0%, analysts said. <\/p>\n<p>\u201cAfter a solid first half of the year, momentum appears to be slowing as multi-decade-high inflation and rapidly rising interest rates weigh on the economy,\u201d Benjamin Reitzes, Canadian rates and macro strategist at BMO Economics, said in a note.<\/p>\n<p>The Bank of Canada hiked rates by 75 basis points to 3.25% earlier this month to fight inflation, which began to cool slightly in July, but is still running at levels not seen in nearly four decades.<\/p>\n<p>The July GDP data showed oil sands extraction drove growth, jumping 5.1% on higher output, with crop production also helping, up 7.2% mainly on volumes of wheat and other grains.<\/p>\n<p>Demand for Canadian wheat has increased since Russia\u2019s Feb. 24 invasion of Ukraine, which Moscow calls a special military operation, helping push up export volumes. <\/p>\n<p>But Canada\u2019s retail trade sector contracted sharply in July, falling to its lowest level since December 2021, pushed down by a 7.1% decline in output at gasoline stations, Statscan said, though that likely reversed in August.<\/p>\n<p>Accommodation and food services also contracted in July, driven by less activity at bars and restaurants.<\/p>\n<p>Hot inflation means the Bank of Canada will likely hike interest rates at its next decision in late October, but then the game may change, economists said. <\/p>\n<p>\u201cThe deceleration in economic momentum is why we see the Bank of Canada only hiking rates once more in October,\u201d Mendes said. Money markets are betting on a hike in October, with one more in December or January to bring the central bank\u2019s policy rate to 4.00%.<\/p>\n<p>The Canadian dollar was trading 0.4% lower at 1.3661 to the greenback, or 73.20 U.S. cents.<\/p>\n<p> (Reporting by Julie Gordon in Ottawa, additional reporting by Dale Smith in Ottawa and Fergal Smith in Toronto; Editing by Nick Zieminski and Paul Simao)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/canadian-economy-surprises-with\/attachment\/file-photo-a-canada-goose-store-in-toronto\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S0QG-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S0QG-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/canadian-economy-surprises-with\/attachment\/file-photo-a-tanker-truck-used-to-haul-oil-products\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S0QH-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S0QH-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/business\/canadian-economy-surprises-with\/attachment\/file-photo-the-canadian-flag-flutters-in-the-wind-in\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8S0QI-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8S0QI-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Julie Gordon OTTAWA (Reuters) \u2013 Canada\u2019s economic activity unexpectedly edged up in July, while gross domestic product in August was most likely flat, data showed on Thursday, with the<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1664332","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1664332","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1664332"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1664332\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1664332"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1664332"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1664332"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}