Canada's GDP Seen Contracting in September After Two Months of Stagnation as Momentum Weakens

08:58 AM EDT, 10/30/2026 (MT Newswires) -- Canada's gross domestic product is expected to contract by 0.1% on a monthly basis in September after remaining unchanged for a second consecutive month in August, pointing to weakening economic momentum, according to data from the country's statistical agency. September's preliminary GDP estimate points to further weakness in manufacturing and mining, quarrying and oil and natural gas extraction, partly offset by gains in utilities and wholesale trade, Statistics Canada said in a statement on Friday. Despite the expected monthly decline, real GDP by industry suggests 0.3% quarter-over-quarter growth in the third quarter, added StatsCan. August's "essentially unchanged" monthly reading reflected a 0.1% decline in services output, driven mainly by weakness in wholesale trade and public administration, offset by a 0.1% increase in goods production as manufacturing and construction grew, said the Ottawa-based agency. Of the 20 industrial sectors, nine expanded in August. Wholesale trade was the largest drag, falling 1.4% on the month, while public administration also weakened broadly. Mining and energy extraction were flat, and utilities declined amid nuclear plant maintenance outages. These declines were partly offset by a rebound in retail trade, continued growth in manufacturing and finance, and stronger transportation and warehousing activity driven by rail transportation. For Canada, GDP represents the unduplicated value of goods and services produced during the reference period and is available for domestic consumption, investment or export.