Quebec GDP slips in July as service sectors offset gains in goods output

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Quebec GDP slips July 2026

Highlights

Quebec's real GDP declines 0.1% in July 2026 after a 0.5% gain in June, with service sector weakness offsetting goods output growth.
Goods-producing industries in Quebec rise 0.4% in July, driven by manufacturing up 0.5%, mining, quarrying, and oil and gas extraction up 2.8%, and construction up 0.5%.
For January–July 2026, Quebec's real GDP grows 0.3% year-over-year, lagging Canada's 1.1% national increase, with manufacturing and public administration weighing on growth.

July industry performance shows mixed provincial economy

As reported by Statistique Québec, citing the Institut de la statistique du Québec, the province's real gross domestic product declines 0.1% in July from the previous month, after rising 0.5% in June, according to its industry-based GDP release for July 2026.

Goods-producing industries rise 0.4% in July after a 0.6% gain in June. The increase comes mainly from manufacturing, up 0.5%, mining, quarrying, and oil and gas extraction, up 2.8%, and construction, up 0.5%.

Within manufacturing, the strongest support comes from computer and electronic product manufacturing, which climbs 5.4%, followed by plastics and rubber products manufacturing, up 4.5%, and chemical manufacturing, up 2.2%.

Service industries, however, fall 0.3% in July following a 0.4% increase in the previous month. The decline is led by wholesale trade, down 3.5%, with additional weakness in public administration, down 0.6%, and retail trade, down 0.8%, while accommodation and food services grows 2.2%.

Seven-month growth remains positive against national backdrop

For the first seven months of 2026, Quebec's real GDP is 0.3% higher than in the same period of 2025. Real estate and rental and leasing contributes strongly with 1.9% growth, while finance and insurance rises 3.3% and transportation and warehousing increases 2.5%.

Manufacturing, down 1.9% over the seven-month period, and public administration, down 1.0%, weigh on the province's broader economic performance. The figures suggest that service areas tied to property and finance continue to support activity even as industrial output remains uneven.

Statistics Canada data published on September 29, 2026 show Canada's real GDP remains unchanged in July after a 0.4% increase in June. For the first seven months of 2026, national real GDP is 1.1% higher than a year earlier, outpacing Quebec's cumulative growth over the same period.

In our earlier article on China’s third-quarter GDP outlook and policy support, we covered expectations for a modest growth pickup driven by fresh stimulus measures such as targeted rate cuts, mortgage subsidies, and the use of unused local-government debt quotas. We noted that stronger exports and factory output were helping offset weak domestic demand, while consumption, private investment, and property-market stress continued to weigh on overall momentum.

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