Recovery stalls

A blip, or a double dip?

The Canadian economy shrank for the first time in 11 months in July, another clear sign of a slowdown, as factories, construction and consumer activity all posted declines.

The country’s real gross domestic product fell 0.1 per cent in the month, the first monthly drop since last August, Statistics Canada said Thursday.

Many measures of the economy have stalled in recent months, from job growth and housing starts to consumer spending and exports, as the global recovery petered out. The latest GDP reading will bolster expectations that the Bank of Canada will pause in raising interest rates next month, after three hikes in a row.

From the Globe. Will holding steady on interest rates be enough? Perhaps some stimulus programs need to be extended...