GDP in August missed expectations, falling 0.3% M/M versus estimates for a flat print…

… led by goods-producing industries, which shed 0.6% and pulled down a 0.1% drop in services.

At the sector level, weakness was broad-based with the exception of retail trade…

… which was the lone bright spot in the print, lining up well to last week’s retail sales data.

On the negative side, some items were transitory - like the Air Canada strike that weighed down transportation & warehousing activity.

Others were more structural, including the continued slowdown in manufacturing…

… and in the utilities sector, which has suffered lower hydroelectric power output amid persistently dry conditions.

Some of these categories are expected to turn around in September, with advanced estimates calling for a 0.1% gain.

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