Overall GDP edges down in July but mining sector shows increase in production
Ottawa, ON - The latest survey of Canada's GDP by Statistics Canada shows that real gross domestic product edg...
Ottawa, ON – The latest survey of Canada’s GDP by Statistics Canada shows that real gross domestic product edged down 0.1% in July 2010, the first monthly decline since August 2009. Manufacturing, retail and wholesale trade, construction and forestry all posted decreases. Increases were recorded in the mining sector and, to a lesser extent, in some financial industries and the public sector.
Manufacturing decreased 0.7% in July, with 11 of the 21 major groups retreating. Manufacturers of non-durable goods reduced their production by 0.9%, in particular those of pharmaceutical and paper products. Manufacturing of durable goods decreased by 0.5%, notably of furniture, metallic and non-metallic products. Increases in the production of food and beverages and motor vehicle parts tempered the decrease in the manufacturing sector.
CONSTRUCTION AND REAL ESTATE TRANSACTIONS DECLINE
Construction declined 0.5% as residential building construction fell 2.0%. The construction of single dwellings was particularly weak. Non-residential building construction and engineering and repair work were up.
The home resale market fell significantly for a third consecutive month, which led to an 8.0% decrease in the output of real estate agents and brokers. The output of this industry stood at about two-thirds of its level recorded at the beginning of 2010.
RETAIL AND WHOLESALE TRADE RETREAT
Retail trade fell 0.5% in July, following a 0.7% gain in June. Decreases were recorded in furniture, home furnishings and electronics stores as well as in building and outdoor home supplies stores. This mirrored the weakness in residential construction and in the home resale market. Increases in general merchandise stores (which include department stores), clothing stores and car dealers tempered the declines.
Wholesale trade edged down 0.2%. Wholesaling of automotive products, building materials and personal and household goods declined. On the other hand, the wholesaling of food and petroleum products increased.
THE MINING SECTOR INCREASES
The mining sector rose 1.1% in July after receding in June. Metal ore production increased significantly as some producers in the copper, nickel, lead and zinc mines industry boosted their output following the end of labour disputes. Support activities for mining, oil and gas extraction (+2.7%) were up also. The production of natural gas advanced in the month, while oil extraction declined.
THE FINANCE AND INSURANCE SECTOR EDGES UP
The finance and insurance sector grew 0.1% in July. This gain was attributable to an increase in personal loans, residential mortgages and in mutual funds sales. Conversely, lower volume of trading on the stock exchanges and in the activities of the insurance industry were offsetting factors.
Forestry and logging receded by 4.6% in July following a double-digit increase in June. Utilities declined 0.4%. Food services decreased for a fourth consecutive month.
Data on gross domestic product by industry for August will be released on October 29, 2010.