Canadian Real GDP Unchanged in December

Statistics Canada (StatsCan) reported today (3-1-22) that the real gross domestic product (GDP) was virtually unchanged in December, following six consecutive months of growth. Growth in services-producing industries (+0.1%) was offset by a decline in goods-producing industries (-0.1%), as 14 of 20 industrial sectors increased in December.

Advance information indicates a 0.2% increase in real GDP in January 2022. Leading the growth were retail, construction, finance, and insurance as well as the professional, scientific, and technical services sector. Notable decreases were in manufacturing, mining, quarrying, and oil and gas extraction as well as client-facing services industries and air transportation services due to continued public health restrictions put in place in late 2021. Owing to its preliminary nature, this estimate will be updated on March 31 with the release of the official GDP data for January 2022.

The construction sector decreased -0.6% in December, after two months of growth, as most types of construction activity were down. Residential buildings construction contracted -2.5% in December, down for the first time in three months. Home alterations and improvements contributed the most to the decline. Offsetting some of the declines were increases in apartment-type dwellings construction and single-family homes, up for the first time in eight months.

Non-residential buildings construction edged lower 0.1%, the first decline in six months, as lower institutional building construction was offset by upticks in the construction of industrial and commercial buildings.

Following four months of growth, repair construction declined -1.6% in December. Engineering and other construction activities (+2.1%) offset some of the declines, with its seventh consecutive month of expansion.