Statistics Canada reports that goods-producing industries and services saw broad sectoral growth in May
Statistics Canada reported a 0.2 percent increase in real gross domestic product (GDP) for May, following a 0.3 percent rise in April.
The goods-producing industries drove this growth with a 0.4 percent increase, as four of five sectors expanded. Services-producing industries saw a slight uptick of 0.1 percent, with 15 of 20 sectors experiencing growth.
In the manufacturing sector, growth continued for the second consecutive month with a 1.0 percent rise in May, the largest increase since January 2023. Non-durable goods manufacturing surged 1.4 percent, marking its highest growth rate since November 2023.
This growth was largely due to a 7.3 percent increase in petroleum and coal product manufacturing, which rebounded after a 5.0 percent decline in April, as many refineries completed maintenance.
Durable goods manufacturing grew by 0.7 percent, with significant contributions from the furniture and related products subsector, which rose 4.6 percent, and miscellaneous manufacturing, which increased by 4.7 percent.
However, the transportation equipment manufacturing subsector declined by 0.4 percent due to retooling activities at an automotive assembly plant in Ontario.
The mining, quarrying, and oil and gas extraction sector contracted by 0.6 percent in May, partially offsetting a 2.1 percent increase in April. The oil and gas extraction subsector, which decreased by 2.1 percent, was the main driver of this contraction.
Oil sands extraction fell by 3.5 percent due to maintenance at upgrading facilities in northern Alberta. Oil and gas extraction (except oil sands) declined by 0.6 percent, as a decrease in natural gas extraction outweighed an increase in crude petroleum extraction.
Meanwhile, mining and quarrying (except oil and gas) increased by 0.5 percent, driven by a 2.7 percent rise in non-metallic mineral mining and quarrying, with potash mining growing by 7.1 percent after a temporary shutdown in April.
Pipeline transportation grew by 0.6 percent in May. The crude oil and other pipeline transportation industry increased by 1.5 percent, partly due to the commencement of the expanded Trans Mountain pipeline.
However, pipeline transportation of natural gas declined by 0.2 percent, tempering overall growth in this subsector.
Retail trade saw the largest decline in May, contracting by 0.9 percent and reversing the growth seen in April. The food and beverage stores, health and personal care stores, and general merchandise stores subsectors contributed significantly to this decline.
Conversely, motor vehicle and parts dealers experienced a 0.8 percent increase, reflecting higher activity at new and used car dealerships.
Wholesale trade fell by 0.8 percent in May, with declines in five of nine subsectors. Motor vehicle and motor vehicle parts and accessories merchant wholesalers were the primary contributors to this decrease, partially offsetting an 8.6 percent increase in April.
Accommodation and food services grew by 0.9 percent for the second consecutive month, driven by a 1.2 percent increase in food services and drinking places. The arts, entertainment, and recreation sector rose by 0.3 percent, marking its third consecutive month of growth.
This was largely due to higher attendance at spectator sports events, with three Canadian National Hockey League teams playing in the playoffs throughout May.
The finance and insurance sector increased by 0.2 percent, driven by the financial investment services, funds, and other financial vehicles subsector, which grew by 0.9 percent.
The public sector, which includes educational services, health care and social assistance, and public administration, expanded by 0.4 percent, marking its fifth consecutive month of growth.
Advance information indicates that real GDP increased by 0.1 percent in June, with gains in construction, real estate, rental and leasing, and finance and insurance offset by declines in manufacturing and wholesale trade.
This preliminary estimate suggests the economy expanded by 0.5 percent in the second quarter of 2024. The official estimate for the second quarter will be released on August 30, 2024.
