Goods-Producing Industries Lead Canadian GDP Growth in May

On Friday, Statistics Canada (StatCan) reported that real gross domestic product (GDP) rose 0.3% in May, marking a second consecutive monthly increase. Both goods-producing and services-producing industries expanded, with 13 of 20 industrial sectors contributing to growth.

Goods-producing industries rose 0.6%, as most sectors within the aggregate increased. Mining, quarrying, and oil and gas extraction led the gain, expanding 1.0%, with two of its three subsectors growing for a second consecutive month. Manufacturing increased 0.3%, driven by gains in most subsectors.

Services-producing industries rose 0.2%, led by real estate and rental and leasing, and public administration. The public sector aggregate—comprising educational services, health care and social assistance, and public administration—expanded 0.3%, with growth across all three sectors.

Construction increased 0.8%, as all subsectors expanded. Engineering and other construction activities and residential building construction each rose 1.1%, with apartment construction driving the residential increase.

Real estate and rental and leasing expanded 0.4%, while finance and insurance and transportation and warehousing each rose 0.3% for a second consecutive month.

Advance information indicates that real GDP increased 0.2% in June. Gains in wholesale trade, finance and insurance, and retail trade were partially offset by declines in utilities and agriculture, forestry, fishing, and hunting. StatCan will update the preliminary estimate on August 28.