OTTAWA—Canada’s economy remained stalled in the latest quarter and may have dipped into a technical recession as the central bank’s past aggressive rate increases weigh on output.

Gross domestic product, a broad measure of goods and services produced across the economy, was effectively flat for a second straight month in August and an early estimate points to the economy remaining stalled at the industry level in September. That indicates the economy flatlined for the third quarter and may have contracted roughly 0.1% on an annual basis, underperforming the Bank of Canada’s projection, which would marking a second straight quarterly decline in GDP after a 0.2% annualized fall in the second quarter.