Canada’s economy declined unexpectedly in August for the first time in eight months, led by a slump in energy and manufacturing activity, providing little reason for policymakers to alter their holding pattern on interest rates.
Gross domestic output fell 0.1% during the month, Statistics Canada said Friday.
Economists had expected marginal growth of zero to 0.1% in August, following flat output the previous month and a six-month string of increases from the start of the year. In December, GDP weakened by 0.4%.
“After an unchanged reading in July, GDP surprised to the downside by falling slightly in August,” said HSBC Bank Canada economist.