Real gross domestic product fell 0.1% in July, after rising 0.6% in June, according to Statistics Canada.
The agency’s initial estimate for July predicted a contraction of 0.4%, despite an easing of public health restrictions.
While the majority of industries tracked by the agency saw growth in July, declines in industries like agriculture and manufacturing more than offset the gains.
According to Statistics Canada, total economic activity in July was about 2% lower than pre-pandemic levels recorded in February 2020.
The agency’s initial estimate for August suggests an increase of 0.7% for the month, which would put total economic activity about 1% below pre-pandemic levels.
August GDP data will be finalized at the end of the month.