GDP contracted by 0.3 per cent in August, offsetting most of the growth in July. Photo by THE CANADIAN PRESS/Darryl Dyck

Canada’s gross domestic product is on track to grow by 0.4 per cent in the third quarter, Statistics Canada said on Friday, positioning the Canadian economy to avoid a technical recession.

GDP contracted by 0.3 per cent in August, driven by a 0.6 per-cent contraction in the goods-producing sector and a 0.1 per-cent decline in services, the first such decline in six months. August’s figures offset most of the growth delivered in July.

Transportation and warehousing posted the biggest monthly sectoral decline, led by the Air Canada flight attendants strike, in which 10,000 workers walked off the job, resulting in flight cancellations.

Statistics Canada’s flash est

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