Canada’s Economy Shrinks in April Amid Broad-Based Slowdown

Canada’s GDP contracted by 0.1% in April, driven by widespread declines in manufacturing, retail, wholesale, and construction. Manufacturing alone fell 0.6%, marking its third drop in four months. The service sector also saw a rare pullback. Early estimates for May suggest flat growth.

Economists say the weak data supports the Bank of Canada’s recent rate cut and increases the chances of another one in July. Consumer spending remains sluggish, and business activity is losing momentum, pointing to broader economic softness.