Canadian Real GDP Declines 0.2% Month-Over-Month in June

Statistics Canada (StatCan) reported on Friday (9-1-23) that real gross domestic product (GDP) declined 0.2% month-over-month in June, following a 0.2% increase in May. Both service-producing industries and goods-producing industries contracted in June, down 0.2% and 0.4%, respectively. In June, 12 of the 20 industrial sectors monitored by StatCan declined.

Seven of nine wholesale trade subsectors also decreased in June. Machinery, equipment, and supplies wholesalers contributed the largest amount of the monthly decline, dropping 5.7%—its sharpest decrease since April 2020. June’s declines more than offset the large gains reported in May.

In the construction sector, activity was down for the second month in a row, decreasing 0.6% in June, as both residential and non-residential construction activity contributed to the decline. Residential building construction fell 2.0% and was the largest contributor to the decrease, down for the fourteenth time in the past 15 months—a reflection of the continuing declines in home alternations and improvements, as well as lower construction of new single-detached homes in the month.

Non-residential building construction posted its second consecutive monthly decline, dropping 1.4% as construction of commercial, public, and industrial buildings all fell for a second month in a row. Engineering and other construction activities partially offset these declines with a 0.5% increase, continuing the upward trend that began in late 2020.

Wildfires negatively impacted multiple industries in June, including the rail transportation subsector, which fell 6.6%—its fourth decline in five months.