The retail trade sector in Canada expanded 0.9%, as 8 of 12 subsectors grew in August which was counter to what the country’s overall economy experienced, according to a report released Friday by Statistics Canada.
Real gross domestic product (GDP) contracted 0.3% in August, offsetting most of July’s 0.3% expansion, with decreases in goods-producing and services-producing industries, explained the federal agency.
Goods-producing industries declined 0.6% in August, marking this aggregate’s fifth contraction since the beginning of the year. Services-producing industries edged down 0.1%, marking this aggregate’s first decline in six months, driven by contractions in transportation and warehousing and in wholesale trade, it explained.
But retail was a shining light amidst the overall decline.
“Motor vehicle and parts dealers (+2.5%) led the growth, recording its second consecutive monthly expansion, driven in August by increases in new and used car dealers as well as automotive parts, accessories and tires retailing. A rebound in general merchandise stores (+2.1%), clothing and clothing accessories stores (+2.7%) and sporting goods, hobby, book and music stores (+6.9%) further contributed to the increase in the sector,” noted Statistics Canada.
“Advance information indicates that real GDP increased 0.1% in September. Increases in finance and insurance, mining, quarrying, and oil and gas extraction, and manufacturing were partially offset by decreases in wholesale trade and retail trade. Owing to its preliminary nature, this estimate will be updated on November 28, 2025, with the release of the official GDP by industry estimates for September,” said Statistics Canada.
“With this advance estimate for September, information on real GDP by industry suggests that the economy edged up 0.1% in the third quarter of 2025. The official estimate for the third quarter will be available on November 28, 2025, when the official estimates of GDP by income and expenditure are released.”
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