Canadian economy grows for third consecutive month

The increase was led by a rebound in manufacturing with 13 out of 20 industrial sectors expanding: StatsCan
The increase in the Canadian economy was led by a rebound in manufacturing with 13 out of 20 industrial sectors expanding: StatsCan

The Canadian economy grew for the third consecutive month in May.

Statistics Canada reported on Wednesday that real gross domestic product was up 0.2 per cent during the month and the increase was led by a rebound in manufacturing with 13 out of 20 industrial sectors expanding. On a three-month rolling average basis, real gross domestic product increased 0.7 per cent, it added.

“Goods-producing industries rose 0.6 per cent, up for a third month after declining since the third quarter of 2018. Services-producing industries edged up 0.1 per cent,” said the federal agency.

“Manufacturing expanded 1.2 per cent in May, continuing its sequence of increases alternating with small declines seen since the end of 2018.

“Durable manufacturing grew 2.3 per cent in May, more than offsetting the 1.7 per cent decline recorded in April, as eight of 10 subsectors expanded.”

StatsCan said the construction sector was up 0.9 per cent in May as nearly all types of construction increased. This was the fourth gain in five months for the sector, following a period of declining activity during the second half of 2018, it said.

“Residential construction (+2.2 per cent) posted its strongest growth in more than a year, with double, row and other multi-unit dwelling construction expanding, along with home alterations and improvements.

The mining, quarrying and oil and gas extraction sector contracted 0.8 per cent in May, following a 5.5 per cent increase in April. Oil and gas extraction decreased 2.5 per cent in May, after two months of growth. Oil sands extraction declined 6.0 per cent, following a 13 per cent increase in April, when facilities scaled up production — instead of undertaking maintenance — to take advantage of easing production restrictions. Oil and gas extraction (except oil sands) rose 1.1 per cent, as crude petroleum and natural gas extraction increased.”

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