Canada's economy expanded 0.1 percent in July from June as growth was held back by a building slump, less oil and gas drilling and a slowdown in the hotel and entertainment sectors, Statistics Canada said on Thursday.
Analysts had forecast, on average, a rise of 0.3 percent for July with the low end of estimates at 0.2 percent. Statscan hiked June's expansion to 0.4 percent from the preliminary 0.3 percent level.
Canada's gross domestic product, the broadest measure of economic activity, was C$1.047 trillion ($824 billion) in July at an annual, seasonally adjusted, rate, Statscan said.
Industrial production was up 0.3 percent in July with all three components posting gains: manufacturing rose 0.3 percent, mining was up 0.2 percent and the utilities sector increased 0.8 percent, Statscan said.
Construction, both residential and non-residential, receded 0.3 percent marking the fourth consecutive month of declines. High crude oil prices failed to keep oil and gas drilling from dropping in July, Statscan added.
Iron ore extraction plunged 24 percent due to work disruptions. Mining for copper, lead, zinc and nickel rose 5.5 percent as Chinese demand for refined copper surged, it said.
Fewer visitors to Canada due to the higher Canadian dollar, slowdowns at US border crossings and the wet, cool summer led to a 1.3 percent fall in accommodation services, a 0.8 percent drop in air travel and a 0.3 percent dip in entertainment and recreation, Statscan said.