Canada’s GDP growth delayed to 0.2% in August

The Canada’s GDP growth delayed to 0.2% MoM in August, supported by improvements in mining, oil and gas sectors. According to the official statistics, the Canadian gross domestic product amounted to 1.68 trillion CAD, which advance matched market expectations. The country’s growth was led by another monthly growth in mining, quarrying and oil and gas extraction, which rose 1.4%. The oil and gas extraction rose by 0.9% in August as production in northern Alberta returned to normal following wildfires in the region earlier this year.

The year-on-year growth stands at 1.3%, keeping the GDP trend in July.

However, the country’s economy is transitioning away from oil, but the process is slow. The goods-producing industries increased by 0.7% in August, while manufacturing output rose by 0.3%. The utilities grew by 2.4%, as heatwaves in eastern Canada pumped up demand for electricity. On the downside, the finance and insurance sectors shrank by 0.2%, the first decline since last November.

The currency pair USD/CAD initially dipped to lower ground but is now above the pre-release levels. The USD has been on the back foot, especially after the ABC poll showed Trump in the lead.

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