It now expects the economy to grow at just 0.3% this year
GDP contracted by 0.2% last year
The slowdown in factory activity was due to a 'decline in the output component': economist
A Chinese Foreign Ministry spokesperson urged Canada to 'not politicize economic and trade issues'
The downgraded estimate follows a jobs report for July that was much worse than expected
Subdued consumer spending also contributed to the slow rebound
Trade deficit in April grew nearly 8% from a year earlier
Higher interest rates are weighing on the economy
Warning comes as big U.S. banks issue mixed profit reports
Figures from March will likely delay Fed rate cuts