Canada’s Gross Domestic Product Contracted -0.3% in May

Statistics Canada (StatsCan) reported on Friday (7-30-21) that real gross domestic products (GDP) in Canada contracted -0.3% in May, following a -0.5% drop in April, and that total economic activity was approximately -2% below February 2020’s pre-pandemic level. Overall, 12 of 20 industrial sectors were down as both services-producing (-0.2%) and goods-producing industries (-0.4%) contracted. Preliminary information indicates an approximate 0.7% increase in real GDP for June.

Growth in retail trade and accommodation and food services were influenced by the easing of public health measures in many provinces in June. After five consecutive months of increases, construction decreased -2.3%. Residential building construction contracted -4.2% in May, down for the first time since November 2020. Declines in single-family homes construction, and in alterations and improvements, more than offset increases in multi-unit dwellings construction. Repair construction decreased -3.7% while engineering and other construction activities were up 0.1% in May. Non-residential building construction edged up 0.1%, as growths in commercial and institutional building construction were offset by lower industrial building and structure construction.

The advance estimate points to an approximate 0.6% increase in real GDP in Q2 2021. Because of their preliminary nature, these estimates will be revised on August 31, with the release of the official GDP data for the June reference month and Q2 of 2021.

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