Canadian Real GDP Increased 0.3% in May

Statistics Canada (StatCan) reported on Friday (7-28-23) that real gross domestic product (GDP) increased 0.3% in May, following a 0.1% uptick in April. Service-producing industries were up 0.5%, but that increase was partially offset by a 0.3% decline in goods-producing industries. Overall, 12 of 20 industrial sectors posted increases in May.

StatCan reports that in May the construction sector declined 0.8%, following a 0.2% increase in April and no change in March. Almost all subsectors in the construction sector posted declines. May’s declines were led by a decrease in home alterations and improvement and the construction of new single-family homes. As a result, the residential building construction sector fell 1.8%. Non-residential construction also retreated, contracting 1.3%, which partially offset April’s increases. This marked the first decline in five months in the non-residential sector. Repair construction shrunk 0.3%, while engineering and other construction activities inched 0.1% higher.

According to advance information, StatCan estimates that real GDP will fall 0.2% in June. The projected decline was driven by the wholesale trade and manufacturing sectors, whose downward movement more than offset the increases recorded in May. This advance information indicates a 0.3% increase in real GDP by industry in Q2. StatCan notes that this information is preliminary in nature and will be updated on September 1st with the release of official GDP data for June and Q2.