Canadian Gross Domestic Product Slips -0.3% in April

According to Statistics Canada (StatCan) real gross domestic product (GDP) contracted -0.3% in April. Ending 11 consecutive months of increases. With the first decline in 12 months, total economic activity remains about -1% below the level prior to the COVID-19 pandemic, which started in February 2020. Overall, 12 of 20 industrial sectors were down as gains in goods-producing industries (+0.5%) were more than offset by contractions in services-producing industries (-0.6%). Preliminary information indicates a decrease in real GDP of approximately -0.3% in May. The retail trade, real estate rental and leasing sectors contributed the most to the declines, while the finance and insurance, and wholesale trade sectors posted gains. Because of its preliminary nature, this estimate will be revised on July 30 with the release of official GDP data for May. The construction sector rose 2.4% in April, up for a fifth consecutive month, as all components increased. Residential building construction (+4.1%) led the expansion, with a fifth consecutive monthly increase. Continued growth in single-family homes and multi-unit dwellings construction more than offset lower activity in home improvements and renovations.