Canadian Real GDP by Industry Increased 0.1% in September, Held Back by Five Consecutive Months of Construction Declines

Statistics Canada (StatsCan) reported today (11-30-21) that real gross domestic product (GDP) rose 0.1% in September. This occurred as declines in the manufacturing, construction, and retail trades were more than compensated for by expansions in service-producing industries, mining, quarrying, and oil and gas extraction.

Manufacturing led the growth after contracting in September due in part to the effects of the semiconductor shortage. Overall, 12 of 20 industrial sectors were up in September, with growth in services-producing industries (+0.4%) more than offsetting a decline in goods-producing industries (-0.6%). However, for the fifth consecutive month construction declined, down -0.7% in September. The monthly decline was driven primarily by the continued contraction in residential building construction, which was down -1.9% in September.

All types of residential building construction activity decreased, with home alterations and improvements and single-family homes contributing the most to the contraction. Non-residential building construction expanded 0.4%, a third consecutive gain, as increased activity in institutional and commercial building construction more than offset lower activity in industrial building and structure construction. Engineering and other construction activities edged down -0.1%, while repair construction was up 0.2% in September.

Preliminary information indicates that real GDP rebounded in October — up 0.8% with increases in most sectors.

FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Original Source:
Gross domestic product by industry, September 2021