September 30, 2026

Real gross domestic product (GDP) was essentially unchanged in July.

Chart 1
Real gross domestic product is essentially unchanged in July

The goods-producing industries grouping was essentially unchanged in July as increases in construction and utilities were offset by declines in the other sectors comprising the aggregate. The services-producing industries aggregate was essentially flat, as increases across several sectors were offset by declines in retail trade and wholesale trade. Overall, 10 of 20 industrial sectors expanded in July.

Construction up for a fourth consecutive month in July, on expansions across all subsectors in the month

The construction sector increased 1.3% in July, rising for a fourth consecutive month. These four consecutive increases offset the declines recorded during the final months of 2025 and the beginning of 2026.

Chart 2
Construction sector grows in July

All subsectors expanded in July. Engineering and other construction activities (+1.5%) and non-residential building construction (+2.9%) contributed the most to the increase. The increase in non-residential building construction marked the largest growth rate for that subsector since January 2022 and reflected increased activity in institutional building construction associated with the construction of a new hospital in Ontario.

Residential building construction grew 0.9% in July 2026, driven by higher home alterations and improvements and increased activity in the new construction of most dwelling types.

Utilities sector rebounds in July

The utilities sector expanded 1.7% in July, more than offsetting June’s contraction. A rebound in electric power generation, transmission and distribution (+1.7%) led the increase, marking the largest growth for the industry group since December 2025. A heat wave in July 2026 swept across many parts of Canada, driving higher demand for electricity.

Natural gas distribution (+2.9%) further added to the growth, on higher demand across all classes of customers.

The manufacturing sector contracts in July

The manufacturing sector decreased 0.9% in July, as both non-durable goods manufacturing industries (-1.3%) and durable goods manufacturing industries (-0.5%) were down in the month. This was the sector’s first decrease in four months, with contractions concentrated in a handful of subsectors.

The petroleum and coal product manufacturing subsector (-5.7%) contributed the most to the decline in July as activity at petroleum refineries was down 6.2%. The unplanned downtime at a refinery in southwestern Ontario resulted in lower production of motor gasoline, diesel and aviation fuel in July. Machinery manufacturing (-5.1%) further contributed to the decline, offsetting most of the increase recorded in the previous month. Fabricated metal product manufacturing contracted 1.5%, while food manufacturing decreased 0.7%, largely driven by lower meat product manufacturing and bakeries and tortilla manufacturing.

The mining, quarrying, and oil and gas extraction sector weighs on July’s growth

The mining, quarrying and oil and gas extraction sector contracted 0.5% in July, on declines across all comprising subsectors.

The oil and gas extraction subsector was down 0.3% in July. A 0.7% decline in oil and gas extraction (except oil sands) drove the contraction, coinciding with lower exports of both commodities in July. Increased activity in oil sands extraction (+0.2%) tempered the decline in the subsector.

The mining and quarrying (except oil and gas) subsector contracted 1.0% in July, driven by a sharp decline in non-metallic mineral mining and quarrying (-4.6%). Potash mining contracted 6.4%, the largest monthly contraction since September 2025, reflecting lower output coming from Saskatchewan and coinciding with lower exports of the product. Metal ore mining (-1.1%) further contributed to the decline in July 2026, driven by contractions in other metal ore mining (-31.2%) as a mine in Saskatchewan experienced production disruptions at its refining facility.

Gold and silver ore mining decreased 2.8%, coinciding with lower exports of unwrought gold, silver, and platinum group metals. Increases in copper, nickel, lead and zinc ore mining (+6.5%) and iron ore mining (+3.3%) tempered the decline in the subsector.

Support activities for mining, and oil and gas extraction declined 0.8%, with contractions across all comprising industries.

Retail trade is down on declines across most subsectors

The retail trade sector decreased 1.0% in July, largely offsetting June’s increase, reflecting contractions in all comprising subsectors except building material and garden equipment and supplies dealers.

Chart 3
Retail trade sector contracts in July

Retailing activity at gasoline stations and fuel vendors (-3.5%) contracted in July, offsetting most of the increase recorded in the previous month and coinciding with rapidly rising gasoline prices during the peak travel season. Similarly, lower activity at general merchandise retailers (-2.2%) further contributed to the decline in July after being among the largest contributors to growth in June.

Sporting goods, hobby, musical instrument, book, and miscellaneous retailers (-1.8%) and motor vehicle and parts dealers (-0.6%) further contributed to the sector’s contraction in July.

Wholesale contracts in July, partially offsetting June’s increase

Wholesale trade contracted 0.4% in July after being among the largest contributors to growth in June. Machinery, equipment and supplies wholesaling contracted 1.6% in July, coinciding with weaker manufacturing activity. The decline in machinery, equipment and supplies wholesaling partially offset the increase recorded in that subsector in June. Similarly, personal and household goods (-1.9%) and miscellaneous wholesaling (-2.5%) contracted in July after posting increases in June. Building material and supplies wholesalers expanded 1.3% in July, tempering the decline in the sector.

Some services-producing industries expand in July

Professional, scientific and technical services rose 0.3% in July, marking the largest monthly growth rate since November 2024, with increases in most of its comprising industry groups. Architectural, engineering and related services (+0.5%) led the growth in July 2026, and the increase recorded by that subsector coincided with higher activity in the construction sector.

Real estate and rental and leasing expanded 0.2% in July on broad-based increases. Real estate (+0.1%) posted its sixth consecutive increase. Rental and leasing services (+0.9%) expanded for a second month in a row, with automotive equipment rental and leasing (+1.9%) contributing the most to the increase in July.

Accommodation and food services grew 0.8% in July, as both accommodation services and food services and drinking places expanded. Accommodation services rose 1.6%, driven by an increase in activity in traveller accommodation which coincided with a rise in the number of international travellers entering Canada.

Chart 4
Main industrial sectors’ contribution to the percent change in gross domestic product in July

Advance estimate for real gross domestic product by industry for August 2026

Advance information indicates that real GDP increased 0.2% in August. Increases in mining and quarrying and retail trade were partially offset by decreases in oil and gas extraction. Owing to its preliminary nature, this estimate will be updated on October 30, 2026, with the release of the official GDP by industry data for August.

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