Real gross domestic product advances for a fifth consecutive month
Ottawa, ON -- Real gross domestic product advanced 0.6% in January 2010, a fifth consecutive monthly increase,...
Ottawa, ON — Real gross domestic product advanced 0.6% in January 2010, a fifth consecutive monthly increase, according to Statistics Canada. Goods-producing industries increased 1.3%, largely on the strength of manufacturing and construction. Mining and oil and gas extraction also increased in January.
The production of services advanced 0.4%, led by wholesale trade. Retail trade, the finance and insurance sector, transportation and the public sector also rose. Conversely, the output of real estate agents and brokers, some tourism-related industries as well as agriculture and forestry retreated.
MANUFACTURING CONTINUES TO INCREASE
After a 1.2% advance in December, manufacturing increased 1.9% in January, with 17 of the 21 major groups advancing. Notable increases were recorded by manufacturers of fabricated and primary metal products, chemicals, plastics and rubber products. In contrast, motor vehicle production fell 2.4%.
WIDESPREAD ADVANCES IN WHOLESALE TRADE
The volume of wholesaling activity increased 2.9% in January. All wholesaling trade groups posted gains, with the exception of apparel and alcohol and tobacco. The most notable increases were in motor vehicles, petroleum products, pharmaceuticals and food products.
The construction sector advanced 1.7% in January. The increases recorded in residential construction (+4.0%) and in engineering and repair work (+1.0%) overshadowed the 0.5% decrease in non-residential building construction. In residential construction, there were increases in all types of structures except apartments, with alterations and improvements work leading the advance.
MINING AND OIL AND GAS EXTRACTION MOVES AHEAD
Mining and oil and gas extraction increased 0.9% in January. Oil and gas extraction rebounded 0.5%, with the production of natural gas increasing and that of oil receding. The mining sector excluding oil and gas advanced 2.3%, with increases at potash and gold and silver ore mines. Foreign demand for these products increased in January. Support activities for mining and oil and gas extraction also were up in January (+1.2%).
The finance and insurance sector advanced 0.6%. This gain was largely attributable to an increase in the volume of trading on the stock exchanges.
Value added in the retail trade sector rose 0.8% in January. Significant increases were registered in building and outdoor home supplies stores, home furnishings stores as well as food and beverage stores. Conversely, decreases were recorded at new and used car dealers and at gasoline stations. Retail trade excluding new car dealers advanced 1.3%.
Sales of existing homes fell significantly in several parts of the country, resulting in a 6.7% decrease in the output of real estate agents and brokers. Despite this decline, the level of output of this industry remained close to its May 2007 peak.
After an increase in December, several tourism-related industries declined in January, mirroring the decline in the number of overnight travellers to Canada. Railway operators benefited from the higher production of goods. The public sector (health, education and public administration combined) increased slightly.