MRO Magazine

Machinery manufacturing declined in October while mining saw small uptick

Ottawa - Real gross domestic product edged up 0.1% in October 2012, following no growth in September and a 0.1% decline in August, according to Statistics Canada. The output of service industries advanced 0.1% in October, primarily a result of...


Ottawa – Real gross domestic product edged up 0.1% in October 2012, following no growth in September and a 0.1% decline in August, according to Statistics Canada. The output of service industries advanced 0.1% in October, primarily a result of increases in wholesale and retail trade. The increases outweighed declines in transportation services and in the arts and entertainment sector. Goods production was unchanged in October. Increases in mining and oil and gas extraction and utilities were offset by declines in manufacturing and construction.

Wholesale and retail trade rise

Wholesale trade rose 0.8% in October, after declining 1.0% in September. Increases were recorded in the wholesaling of farm products, food, beverage and tobacco products, as well as motor vehicle and parts. In contrast, wholesaling of petroleum products and machinery and equipment declined in October.

Retail trade (+0.3%) also rose in October. The most notable increases were at motor vehicle and parts dealers, clothing and clothing accessories stores, food and beverage stores as well as gasoline stations. On the other hand, activity at furniture and home furnishings stores and electronics and appliance stores was down.

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Mining and oil and gas extraction increases

Mining and oil and gas extraction increased 0.3% in October. Oil and gas extraction grew 0.4%, as both crude petroleum production and natural gas extraction advanced. Support activities for mining and oil and gas extraction (+1.3%) also rose, as a result of an increase in drilling and rigging services.

In contrast, mining excluding oil and gas extraction declined 0.4%. A decrease in coal production outweighed the increases in copper, nickel, lead and zinc as well as gold and silver mining.

Utilities advance

Utilities increased 1.2% in October, following two consecutive monthly declines. Both electricity production and natural gas distribution advanced.

Manufacturing output decreases

Manufacturing output declined 0.4% in October. Durable goods production fell 0.5%, mainly as a result of declines in machinery manufacturing. Non-durable goods manufacturing decreased 0.4%. Declines in food, chemical, as well as plastic and rubber products manufacturing outweighed increases in beverage and tobacco products, printing and related support activities and petroleum and coal products. Food manufacturing was down mainly because of the temporary closure of a meat manufacturing plant in Alberta.

Construction edges down

Construction edged down 0.1% in October. A decline in residential and non-residential building construction more than offset an increase in engineering construction and repair work.

The output of real estate agents and brokers declined 1.4% in October, as activity in the home resale market decreased.

Other industries

Transportation and warehousing services declined 0.6% in October, mainly because of declines in truck and rail transportation, support activities for transportation as well as pipeline transportation.

The arts and entertainment sector declined 1.6% in October, partly because of a labour disruption that resulted in the cancellation of regular season games in professional hockey.

The public sector (education, health and public administration combined) edged up 0.1%.