Led by Construction Sector Increases Canada’s Real Gross Domestic Product Increased 1.1% in March

Statistics Canada (StatCan) is reporting, in preliminary estimates, that real gross domestic product (GDP) increased 1.1% in March, following a 0.4% increase in February. The March increase marks the 11th consecutive month of growth, and the increase continues to offset the steepest drops in Canadian economic activity on record in March and April of 2020. Nevertheless, total economic activity is still about -1% below the level observed in February 2020, before the onset of the COVID-19 pandemic. Both goods-producing (+1.1%) and services-producing (+1.1%) industries were up, as 18 of 20 industrial sectors posted increases in March. Construction rose 2.2% in March, building up on increases in the previous three months, as all subsectors were up. The residential building construction subsector contributed the most to the growth, with a 4.1% expansion in March, as all types of construction activities were up. Single-family home construction and alterations and improvements led the expansion, as strong demand continued into March. With the exception of November (-0.3%), the subsector has been continuously growing since May 2020. Repair construction increased 1.8% in March, while non-residential building construction rose 1.3%, as all components increased. Engineering and other construction activities also grew (+0.3%).