Canadian GDP Stalls, Propped Up By Retail And Credit Cards

The Canadian economy has stalled, and the details offer little reassurance. Real GDP was flat in August for a second straight month, according to Statistics Canada (StatCan). Retail and credit card activity helped support output, an ominous combination as credit industry reports point to rising balances and delinquencies. The agency’s preliminary September estimate suggests that stagnation would be good news compared to what lies ahead. Canada’s Economy Stalls For A Second Consecutive Month Source: StatCan. Canadian economic output stalled for another month. Following a flat July, real GDP remained “essentially unchanged” in August. Just 9 of 20 industrial sectors expanded, with goods-producing industries rising 0.1% but tamed by a 0.1% drop in services. The stagnation follows massive jumps in April (+0.6%), May (+0.3%), and June (+0.4%), highlighting an abrupt and rapid loss of momentum. Retail and Credit Card Activity Helping To Prop Up the Economy The latest GDP report shows the economy may be living on borrowed time. One of the key areas of growth is retail output, rising 1.2% in August, led by vehicle dealers and food retailers. Also providing a boost was finance and insurance...