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Canadian factory sales fell a more than expected 1.5% in July led by lumber and aerospace, Statistics Canada reported Tuesday, adding to evidence the economy stumbled at the start of the third quarter.
Economists had predicted a 1.2% decline on the month, and before this report StatsCan gave a flash estimate for GDP to decline 0.4% in July, building on a 1.1% annualized decline in Q2. The manufacturing capacity utilization rate also fell to the lowest since February, declining to 76.7% from 79.3%.
One bright spot was a 14% rise for motor vehicles as firms worked through a global chip shortage. The agency also boosted its June sales increase estimate to 3.6% from 2.1%.