The Globe and Mail reports in its Saturday edition that Canada's GDP contracted in August, defying expectations of no growth. A Reuters dispatch to The Globe reports that the economy shrank by 0.3 per cent in August, following a revised growth of 0.3 per cent in July, effectively negating any growth in the current quarter, according to Statistics Canada. This was the fourth contraction in five months, driven by declines in both the services and goods sectors. An advance indicator suggests that September's monthly GDP may grow by 0.1 per cent, bringing the third quarter's total annualized growth to 0.4 per cent, which falls short of the BOC's forecast. This estimate, based on industrial output data, may change as Statscan will later publish the quarterly GDP based on income and expenditure. Canada could avoid a recession in the third quarter if the economy boosts output in September. Two quarterly contractions in a row is considered a recession. Canada's GDP had shrank in the second quarter by 1.6 per cent as the impact of tariffs on steel, cars, lumber and aluminum, and general trade uncertainty reduced exports and hurt growth. The BOC said last week that the third quarter annualized GDP was likely to be 0.5 per cent.