Canada August GDP Stagnates at 0.0% as Preliminary September Estimate Signals Contraction

Canada's real gross domestic product remained unchanged at 0.0% month-over-month in August 2026, missing consensus expectations of a 0.2% increase and marking a second consecutive month of stagnation. A preliminary advance estimate from Statistics Canada points to a 0.1% contraction in September, signaling fading momentum. While retail trade rebounded 1.2% and manufacturing gained 0.3% in August, gains were offset by a 1.4% drop in wholesale trade and a 1.2% decline in oil and gas extraction. Preliminary third-quarter GDP tracked at 0.3% non-annualized, or approximately 1.3% annualized.