Economy flat in July as oil and gas sector down, Statistics Canada says

Statistics Canada says the country's real gross domestic product was essentially unchanged in July as weakness in oil and gas extraction offset gains in service industries.

Economists had expected growth of 0.1 per cent, according to financial markets data firm Refinitiv.

The flat reading for the month came as goods-producing industries fell 0.7 per cent for the month.

The mining, quarrying, and oil and gas extraction sector pulled back 3.5 per cent in the month, the largest decrease in the sector since May 2016.

Oil and gas extraction fell 3.0 per cent in July due in large part to a shutdown of some of Newfoundland and Labrador's offshore production facilities for a large part of the month as a result of maintenance issues.

Meanwhile, Stastics Canada says the services-producing industries rose 0.3 per cent.

One economist suggested not reading too much into the overall flat growth seen in July.

"Today's headline was definitely soft, but the underlying story was not," TD Bank senior economist Brian DePratto said in a commentary. 

"If it weren't for the drag from the energy/mining sector, we'd have had a repeat of June's solid performance, even with the relative lack of growth breadth.  If you're looking for generalized weakness in Canada's economy, today's report ain't it,' he wrote.

DePratto also said the latest report on the economy isn't likely to produce movement by Bank of Canada on interest rates.

"Governor [Stephen] Poloz and company are looking for signs of the global trade and manufacturing slowdown manifesting in the Canadian data. For now, the waiting game continues," he said.