Economy Flat in July
CBJ — Economic growth stalled in July as the oil and gas sector pulled back due to a shutdown of some of Newfoundland and Labrador’s offshore production facilities for maintenance.
The country’s real gross domestic product was essentially unchanged in July according to figures released by Statistics Canada as the weakness in oil and gas extraction offset gains in service industries.
The flat reading for July followed a second quarter that saw the economy grow at an annualized pace of 3.7%, the strongest showing for a quarter in two years.
Overall, goods-producing industries fell 0.7% in July, led lower by the mining, quarrying, and oil and gas extraction sector which pulled back 3.5% in the month, the largest decrease in the sector since May 2016.
Oil and gas extraction fell 3% in July as extraction excluding oilsands fell 4.7%, while oilsands extraction dropped 1%.
The construction sector was down 0.7%, while manufacturing ticked down o.1%.