Manufacturing output rises after three monthly declines
Ottawa, ON -- Real gross domestic product (GDP) rose 0.3% in July 2011 following a 0.2% increase in June, according to the latest survey of GDP by industry from Statistics Canada.
Ottawa, ON — Real gross domestic product (GDP) rose 0.3% in July 2011 following a 0.2% increase in June, according to the latest survey of GDP by industry from Statistics Canada.
Manufacturing and, to a lesser extent, wholesale trade and transportation services were the main sources of growth. Increases in utilities and the public sector (public administration, education and health services) were also recorded. Retail trade, mining and oil and gas extraction, construction and the finance and insurance sector decreased.
Manufacturing increased 1.4% in July following three consecutive monthly declines. Growth was broadly based, with manufacturing of both durable (+2.1%) and non-durable goods (+0.5%) advancing. Manufacturers of motor vehicles and parts, fabricated metals, machinery and chemical products posted significant gains. Manufacturing of food as well as furniture and related products was down.
Transportation and warehousing services resume growth
Transportation and warehousing services grew 1.8%, mainly as a result of a return to a more normal level of activity in postal services following labour disruptions in June. Rail, trucking and air transportation also showed growth in July.
Widespread gains in wholesale
Wholesale trade rose 1.5% in July. Increases were registered in many of the sub-sectors, particularly in motor vehicles and parts, personal and household goods as well as machinery and equipment.
Retail trade fell 0.7%, with a significant decrease in motor vehicles and parts dealers. Excluding motor vehicle and parts dealers, retail trade was unchanged.
The output of utilities increased 1.5%, as warmer than normal temperatures in most parts of the country led to higher demand for electricity. Natural gas distribution was up, partly as a result of increased industrial consumption.
Construction declined 0.3% in July, with decreases in non-residential building construction and in engineering and repair work. Residential construction edged up 0.1% in July.
Activity in the home resale market softened in July, which led to a 1.1% decline in the output of real estate agents and brokers.
Mining and oil and gas extraction falls
Mining and oil and gas extraction fell 0.3%, as the significant decline in natural gas extraction outweighed the increase in crude petroleum production. Support activities for mining and oil and gas extraction also declined, as a result of reduced drilling activity.
Excluding oil and gas extraction, mining output grew 2.9%. This was largely attributable to gains in copper, nickel, lead and zinc mining following a period of production difficulties and maintenance work.
Finance and insurance down
The finance and insurance sector decreased 0.3%, as both the volume of trading on the stock exchanges and the sales of mutual funds declined. Lower activity for insurance carriers was also a factor in the decline.