The DLI Sinks Further in August: Quebec May Already Have One Foot in a Recession

The DLI began trending lower several months ago, but the decline picked up speed in August, with the index falling 2.9% on the month. Quebec’s economy has also changed course since the spring, closing the door on a period of strong real GDP growth. The accelerating decline in the DLI confirms that the road ahead only going to get bumpier. Difficulties in the Quebec economy have already become broad-based, and real GDP recorded its fourth consecutive monthly decrease in July. A number of indicators, including the DLI, point to a recession in Quebec—one that may have even already started.