GDP was essentially unchanged in June, coming in at minus 0.0 percent following a downward revised 0.1 percent rise in May. The advance estimate for July is also for an unchanged reading.

A monthly 0.4 percent fall for goods-producing industries pulled down June as gains for utilities and agriculture only partially offset declines in manufacturing and construction. Services-producing industries rose 0.1 percent for a third straight increase.

The goods decline was led by a 2.4 percent fall for durable goods manufacturing which was the largest since April 2021 with the level of production the lowest since November 2021. The drop reflected retooling at US assembly plants and related suspension of production at Canadian plants. Construction fell 0.6 percent to its lowest level since January 2021.

After a better-than-expected 0.2 percent gain in May that followed a 0.3 percent rise in April, GDP in June is expected to rise 0.1 percent.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy. In contrast to most industrialised countries a monthly estimate is provided derived from the value added by labour and capital in transforming inputs purchased from other producers into that industry's output. Data for the reference month are usually released close to the end of the second month after the reference period.

Instead of producing an advanced quarterly GDP figure and revising it the following two months, Statistics Canada releases monthly estimates of real GDP at Basic Prices. This release breaks down real output by seven goods-producing industries and twelve service-producing industries, and includes special aggregations such as business sector, non-business sector, and industrial production.

The sources of data used for monthly and quarterly estimates often differ and leads to very different estimates for certain items, such as price deflators. As a result, the monthly figures are not perfectly correlated with the quarterly numbers. However, the monthly data do give some idea of where the quarter is headed and especially in an uncertain environment, they are closely watched. While industrial production is closely watched in the U.S., it is not in Canada especially since the economy has become increasingly dominated by services. However, the goods sector is more vulnerable to wide swings in output compared to services, and exports remain dominated by industrial output.