Canada GDP Falls 0.1% in August

By Paul VieiraFeaturesDow Jones Newswires

The Canadian economy shrank in August, the first monthly decline since October of last year, on a slump in manufacturing and lower energy production.

The surprise result underscores the belief that the economy slowed markedly after a remarkable performance in the first half of the year, and could keep the Bank of Canada on hold with rate policy for the immediate future.

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The level of Canada's gross domestic product, or the broadest measure of goods and services produced in an economy, fell in August 0.1% to 1.74 trillion Canadian dollars ($1.36 trillion), Statistics Canada said Tuesday. Market expectations were for GDP growth of 0.1%, according to economists at Royal Bank of Canada.

On a one-year basis, Canadian economic output climbed by a respectable 3.5%.

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(END) Dow Jones Newswires

October 31, 2017 08:45 ET (12:45 GMT)