Economy Up 0.2% in July

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CBJ — The nation’s economy grew by 0.2% in July thanks in large part to the strength in the manufacturing sector.

The figures released by Statistics Canada means that expectations are heightened the Bank of Canada will raise its key interest rate next month.

Real gross domestic product grew by 0.2%, an increase that followed essentially no change in June.

The Bank of Canada’s trend-setting interest rate sits at 1.5% after four increases since the middle of last year.

Bank governor Stephen Poloz has said uncertainty over NAFTA has resulted in less business investment in Canada than there otherwise should be.

Statistics Canada said goods-producing industries grew 0.3%, while services-producing industries increased 0.2%.

Twelve of the 20 sectors gained ground led by the manufacturing sector at 1.2%.

Wholesale trade grew 1.4%, while transportation and warehousing services grew 0.9%.

Construction moved down 0.6%.

@CanBizJournal

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