FX.co ★ Canada GDP Falls 0.1% in June

In July, Canada's real GDP experienced a modest increase of 0.1% compared to the previous month. This growth was fueled by improvements in real estate, rental and leasing, mining and quarrying, and wholesale trade, according to preliminary data. However, these positive changes were somewhat nullified by a reduction in retail trade activity. In June 2025, the GDP saw a decrease of 0.1%, marking it as the third consecutive month of decline. This downturn resulted from a 0.5% contraction in goods-producing industries, with manufacturing suffering a 1.5% decrease—a drop influenced by U.S. tariffs affecting automobiles, metals, and chemicals. Additionally, utilities shrank by 1.2%, largely due to drought conditions reducing hydroelectric production. Conversely, the services sector exhibited a 0.1% growth in June, driven predominantly by a robust 1.4% resurgence in retail trade following a decline in May, alongside steady progress in real estate, rental and leasing, and wholesale trade, which went up by 0.5%. Nevertheless, overall growth was curbed by downturns in the public sector, transportation and warehousing, and many other service sectors. In total, 11 out of 20 sectors witnessed contraction in June.