MNI DATA IMPACT: Canada August GDP +0.1%, Matching Forecast>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canada's economy resumed modest growth in August 

after stalling in July, as gains in manufacturing were blunted by 

weakness in oil production.

     Gross domestic product grew 0.1% on the month, Statistics 

Canada reported Thursday from Ottawa, matching the MNI economist 

median. 

     Factory production climbed for the first time in three months with 

a 0.5% gain led by metals and minerals. Production of transportation 

equipment rose for a fourth straight month, the longest streak since 

2012, on gains in aircraft and autos. 

     Production climbed in 14 of 20 industries, with most making a 

modest contribution to overall growth. Global financial market turmoil 

in August lifted investment services by 2.9% amid the heaviest trading 

on the Toronto stock exchange since 2012, and there were gains in 

professional services and retailing. 

     Energy production fell for the third time in four months, as 

maintenence shutdowns curbed oil output. Output fell 0.7% in August and 

is down 3.9% from a year ago. 

     The economy is slowing with global trade tensions cutting into 

exports and business investment, while household spending is curbed by 

record debt burdens. The central bank on Wednesday kept its benchmark 

lending rate at 1.75% saying the economy's resilience will be 

increasingly tested by a weaker global outlook. 

     The August figure is consistent with expectations that 

third-quarter growth will slow by more than half from the second 

quarter's 3.7% annualized pace. The economy grew 1.3% in August from the 

same month a year ago.

     Statistics Canada today also lowered its estimate for June GDP 

growth to 0.1% from 0.2%. 

--MNI Ottawa Bureau; +1-613-314-9647; greg.quinn@marketnews.com

     [TOPICS: MACDS$,M$C$$$,MAUDR$]