Canadian Real GDP Increases 0.2% in May

On Wednesday, Statistics Canada (StatCan) reported that real gross domestic product (GDP) grew 0.2% in May, following a 0.3% increase in April. Goods-producing industries were up 0.4% and were the main contributor to the overall growth, with four of five sectors expanding. Services-producing industries edged up 0.1%. Overall, 15 of 20 sectors expanded in May.

The following sectors expanded in May:

• The manufacturing sector led the growth, up 1.0%, rising for a second consecutive month. The increase was the largest since January 2023 as both durable and non-durable manufacturing rose.
• Non-durable goods manufacturing posted a 1.4% increase and recorded its largest growth rate since November 2023, with over half of the increase stemming from petroleum and coal product manufacturing.
• Accommodations and food services grew for the second consecutive month, increasing 0.9%.
• Durable goods manufacturing expanded 0.7%, as 6 of 10 subsectors increased.
• Pipeline transportation increased 0.6%. The crude oil and other pipeline transportation industry rose 1.5%, reflecting in part commencement of the expanded Trans Mountain pipeline as the first tankers carrying Western Canadian oil departed from the Port of Vancouver in late May.

Those gains were offset by the following declines:

• The retail trade sector was the largest detractor to growth, contracting 0.9% and more than offsetting the increase recorded the month before.
• Despite increases in two of three subsectors, the mining, quarrying, and oil and gas extraction sector contracted 0.6% (partially offsetting a 2.1% increase in April).
• The wholesale trade sector contracted 0.8%—following a 1.4% increase in April—with five of nine subsectors decreasing.

Advance information indicates that real GDP increased 0.1% in June. Increases in construction, real estate and rental and leasing, and finance and insurance were partially offset by decreases in manufacturing and wholesale trade. Owing to its preliminary nature, this estimate will be updated on August 30th.

With this advance estimate for June, information on real GDP by industry suggests that the economy expanded 0.5% in Q2. The official estimate for Q2 will be available on August 30th alongside the estimate of GDP by income and expenditure.