Canada’s economy shrank in August as a strike by Air Canada flight attendants grounded flights and weighed on growth.
Statistics Canada said Friday that real gross domestic product fell 0.3 per cent in August, reversing most of the gain recorded in July.
Both goods‑producing and services‑producing industries declined. The agency reported that goods‑producing industries dropped 0.6 per cent, marking their fifth contraction since the start of the year.
Services edged down 0.1 per cent, the first decline in six months. Transportation and warehousing fell 1.7 per cent, with air transportation down 4.6 per cent.
Statistics Canada explained the drop was tied to a mid‑August strike involving 10,000 Air Canada flight attendants, which led to widespread cancellations.
The strike also contributed to a 1.9 per cent decline in support activities for transportation, the largest decrease since January 2022.
Wholesale trade fell 1.2 per cent, its first decline in four months, led by an 8.3 per cent drop in motor vehicle and parts wholesalers.
Food, beverage, and tobacco wholesalers also experienced a decline, dropping 5.2 per cent.
Mining, quarrying, and oil and gas extraction declined 0.7 per cent, while utilities fell 2.3 per cent as drought conditions continued to weigh on hydroelectric power generation.
Manufacturing slipped 0.5 per cent, with broad‑based declines across durable and non‑durable goods.
Retail trade was one of the few sectors to grow, rising 0.9 per cent in August.
Statistics Canada said motor vehicle and parts dealers led the increase, along with gains in clothing, general merchandise and sporting goods stores.
Looking ahead, the agency’s advance estimate suggests GDP grew 0.1 per cent in September.
That would mean the economy edged up 0.1 per cent overall in the third quarter. Statistics Canada will release the official figures on November 28.
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