06:54 AM EDT, 09/04/2025 (MT Newswires) -- Canadian labor productivity fell in the second quarter for the fifth time in the past six quarters, Bank of Montreal (BMO) said.

Productivity declined 1% from the prior quarter, the biggest drop since 2022, as real gross domestic product contracted and hours worked edged higher, the bank said.

Statistics Canada said wildfires had a net neutral effect on aggregate hours worked, with some sectors losing hours while others worked overtime.

Trade uncertainty weighed on the productivity data, with manufacturing and wholesale trade the biggest drags, BMO said.

Manufacturing is likely to remain under pressure as long as the United States maintains tariffs on Canadian goods, keeping a broader recovery in productivity on hold, the bank said.