Canadian GDP by Industry Declines for Third Straight Month in June

On Friday, Statistics Canada (StatCan) reported that real gross domestic product (GDP) by industry edged down 0.1% in June, marking the third consecutive monthly decline and the first such streak since late 2022.

Goods-producing industries contracted 0.5% in June, led by manufacturing and utilities. Services-producing industries edged up 0.1%, supported by gains in retail trade, real estate and rental and leasing, and wholesale trade. Declines in the public sector and most other service industries tempered the increase. Overall, 11 of 20 industrial sectors contracted in June.

The construction sector was a bright spot, rising 0.3% for its third gain in four months. Residential building construction climbed 1.6%, driven by new single-detached housing and home renovations. Repair and remodeling construction increased 0.3%. Offsetting these gains, nonresidential building construction fell 1.0%, and engineering and other construction activities declined 0.4%.

For the quarter, real GDP by industry fell 0.2% in Q2, partially offsetting a 0.4% gain in Q1. Goods-producing industries contracted 1.2% in Q2, as all sectors except construction (up 0.2%) declined. Services-producing industries rose 0.2%, extending their growth streak to 20 straight quarters. Nine of 20 industrial sectors contracted in the quarter.