The retail trade sector was the largest detractor to Canadian economic growth in September with a 0.7% contraction in the month due to declines in most subsectors, reported Statistics Canada on Friday.
“In September, the motor vehicle and parts dealers’ subsector (-2.1%) was down for the first time in three months, reflecting lower retailing activities at new car dealers. The contraction in retailing activities at general merchandise retailers (-1.1%), building material and garden equipment and supplies dealers (-1.1%) and gasoline stations and fuel vendors (-1.0%) further contributed to the decline in the sector. Meanwhile, growth at food and beverage retailers (+0.4%) mitigated the sector’s decline,” said the federal agency.
The wholesale trade sector expanded 0.6% in September, up for the fourth time in five months, added Statistics Canada.
“Building material and supplies wholesalers rose 3.4% in September, the largest monthly growth rate in nearly two years, coinciding with the higher activity in sawmills and wood preservation in September,” it said.
“Food, beverage and tobacco wholesaling (+1.6%) further contributed to the increase in September, coinciding with increased activity in beverage and tobacco product manufacturing (+5.9%) and food manufacturing (+0.4%) in the month.”
Overall, for the Canadian economy, Statistics Canada said real gross domestic product (GDP) rose 0.2% in September, more than offsetting August’s decline (-0.1%), as goods-producing industries drove the increase for the second time in three months.
Goods-producing industries increased 0.6% in September, largely driven by higher activity in the manufacturing sector. Meanwhile, services-producing industries edged up 0.1%. Overall, 10 industrial sectors increased in September, it explained.
Statistics Canada also reported on Friday that Canadian GDP increased 0.6% in the third quarter of 2025, after falling 0.5% in the second quarter. The rise in the third quarter was driven by a strengthening trade balance, as imports dropped and exports edged up. Increased capital investment was driven by government capital spending, as business investment was flat. Overall growth was dampened by declines in household and government final consumption expenditures as well as a slower accumulation of business inventory.
On a per capita basis, GDP increased 0.5% in the third quarter, after falling 0.5% the previous quarter, it said.
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