OTTAWA—Canada’s economy likely rebounded in August from a slight contraction in July, buoyed by growth in the hospitality industry, though a withering drought will continue to drag on the important agriculture sector, data showed on Friday. The Canadian economy contracted 0.1 percent in July, just beating analyst estimates of a decline of 0.2 percent, but likely grew by 0.7 percent in August on jumps in services and manufacturing, Statistics Canada said. The August number is a preliminary estimate. With the expected rise in August, total economic activity is about 1 percent below pre-pandemic levels, Statscan said. “The slightly smaller-than-expected setback in July and nice pop in August suggest that the economy managed to grind out some moderate growth in the summer quarter as a whole,” Doug Porter, chief economist at BMO Capital Markets, said in a note. The July decline came as a heat wave hit the agriculture sector and …