Manufacturing, oil and gas take lead in August growth of industrial GDP
Ottawa, ON -- Real gross domestic product increased by 0.3% in August 2010, following a 0.1% decline in the pr...
Ottawa, ON — Real gross domestic product increased by 0.3% in August 2010, following a 0.1% decline in the previous month, reports Statistics Canada in its latest survey of Gross Domestic Product by Industry. Oil and gas extraction, wholesale trade and manufacturing were the main sources of growth in August. Increases were also recorded in the finance and insurance sector, by real estate agents and brokers, in construction and retail trade. Utilities and forestry decreased while public sector output was unchanged.
Mining and oil and gas extraction rose 0.5%. Oil and gas extraction rebounded (+1.5%), with both natural gas and oil production advancing. These increases were partially offset by decreases in metal ore mining and in support activities for mining, oil and gas extraction.
After three consecutive monthly declines, wholesale trade rose 1.1% in August. All major sectors posted gains, with the exception of food, beverage and tobacco as well as personal and household goods. The largest increases were recorded in the wholesaling of machinery and equipment and of petroleum products.
Manufacturing grew 0.5%, with 13 of the 21 major groups advancing. Manufacturers of non-durable goods increased their production by 0.8%, notably of chemical products. Durable goods manufacturing advanced 0.2%, led by fabricated metal products, furniture, machinery and non-metallic mineral products. Conversely, the manufacturing of primary metal products decreased in August after a gain in July.
The finance and insurance sector advanced 0.6% in August. This rise was mainly attributable to increases in financial intermediation (personal and business loans, residential mortgages, mutual funds sales) and higher volume of trading on the stock exchanges.
Construction rose 0.4%, with all major components (residential and non-residential buildings as well as engineering and repair works) increasing. The home resale market picked up in August after three consecutive monthly declines. This translated into a 5.8% increase in the output of real estate agents and brokers.
Retail trade edged up 0.1% in August. Increases were recorded at new car dealers, home furnishings stores, supermarkets and gasoline stations. Conversely, decreases were recorded at beer, wine and liquor stores as well as clothing and general merchandise stores.
Accommodation and food services were up 0.7%. Utilities declined 0.8% as the demand for electricity decreased, and forestry and logging (-4.0%) contracted for a second consecutive month. The public sector (education, health and public administration combined) was unchanged.
Data on gross domestic product by industry for September will be released on November 30.