Canadian Real GDP Slips in March

On Friday, Statistics Canada (StatCan) reported that real gross domestic product (GDP) fell 0.1% in March, partially offsetting February’s 0.2% increase.

Goods-producing industries declined 0.8%, more than offsetting February’s gain and marking the fifth contraction in the past six months. The decrease was driven primarily by lower activity in mining, quarrying, and oil and gas extraction, as well as the construction sector. Services-producing industries edged up 0.1%, supported by growth in wholesale trade. Overall, 8 of 20 industrial sectors contracted in March.

The construction sector fell 0.6% in March, following a 1.5% decline in February, marking its second consecutive monthly decrease. Engineering and other construction activities declined 0.9%, while residential building construction fell 0.8%.

Within residential construction, activity decreased across most building types. Alteration and improvement work, along with construction of single-detached and apartment buildings, contributed the most to the decline.

StatCan also released preliminary data indicating that real GDP increased 0.4% in April. Growth in mining, quarrying, and oil and gas extraction, manufacturing, and transportation and warehousing was partially offset by declines in agriculture, forestry, fishing and hunting. The preliminary estimate will be updated on June 30 with the release of the official April GDP by industry data.