MNI DATA IMPACT: Canada July GDP Lags Forecast on Oil Repairs>

By Greg Quinn and Anahita Alinejad

     OTTAWA (MNI) - Canada's economy stalled in July as oil and gas 

production fell the most in a decade after repairs to an energy site off 

the coast of Newfoundland. 

     Gross domestic product was little changed from June, while the MNI 

economist median called for 0.1% increase. Oil and gas production 

dropped by 4.7% in July, excluding the heavy crude mostly produced in 

Alberta. The Newfoundland site needed maintenance for most of the month. 

     It wasn't just oil that was the problem -- there were also 

contractions in manufacturing, construction and transportation, 

Statistics Canada said Tuesday from Ottawa. 

     Growth has been fading since a peak of 0.5% in March. The July 

figure is consistent with the Bank of Canada's view that growth will 

slide in the third quarter following a 3.7% second-quarter gain. The 

central bank has resisted pressure to cut interest rates amid a 

U.S.-China trade war, saying last month the domestic economy was close 

to full capacity and inflation around policy makers' 2% target. 

     The economy was supported by real estate sales in Vancouver and 

Toronto, markets showing strength again after regulators stepped in with 

measures to prevent them from overheating. Real estate broker activity 

rose 4.2% in July, the fifth straight increase. Other work supporting 

real estate sales drove the biggest gain in professional services in 

five years.

     Wholesale sales rose 1.1% in July, the sixth gain in seven months. 

That was curbed by a 0.1% decline in manufacturing following a 1.3% 

fall in June. Transportation and warehousing also fell for the 

second straight month.

     Statistics Canada kept the June GDP figure at a gain of 0.2% while 

boosting the May figure to 0.3% from 0.2%. 

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

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