MRO Magazine

Oil & gas industry leads August GDP growth

Ottawa – Real gross domestic product rose 0.3% in August 2013, after increasing 0.6% in July and declining 0.5% in June, according to Statistics Canada.


Ottawa – Real gross domestic product rose 0.3% in August 2013, after increasing 0.6% in July and declining 0.5% in June, according to Statistics Canada.

The output of goods-producing industries grew 0.4% in August, led by oil and gas extraction. The agriculture and forestry sector also increased. In contrast, manufacturing and utilities declined. Construction was unchanged.

The output of service industries increased 0.3% in August, after gaining 0.4% in July, as almost all major industrial sectors registered growth. Gains were recorded in accommodation and food services, wholesale and retail trade, professional services as well as transportation and warehousing services. The public sector (education, health and public administration combined) edged up, while finance and insurance edged down.

Mining, quarrying and oil and gas extraction grows

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Mining, quarrying and oil and gas extraction grew 1.9% in August, after expanding 1.5% in July.

Oil and gas extraction was up 2.8% in August, mainly as a result of a notable increase in oil production. Natural gas extraction was also up.

Support activities for mining and oil and gas extraction increased 2.8% in August, after rising 4.9% in July, as both drilling and rigging services were up.

In contrast, mining and quarrying (excluding oil and gas extraction) was down 1.1%, as decreases in potash and metallic mineral mining more than offset an increase in coal mining.

Wholesale and retail trade increase

Wholesale trade grew 0.4% in August, led by wholesaling of personal and household goods. Wholesaling of machinery, equipment and supplies and of motor vehicles and parts was also up in August. These gains were partially offset by a decline in the output of miscellaneous wholesalers (which includes agricultural supplies).

Retail trade grew 0.3% in August. There were notable gains at food and beverage stores, clothing and clothing accessories stores as well as building material and garden equipment supplies dealers. In contrast, retailing activity was down at gasoline stations, electronics and appliance stores and motor vehicle and parts dealers.

Manufacturing output declines

Manufacturing output declined 0.3% in August, after increasing 0.9% in July. Manufacturing of non-durable goods was down 0.7% in August, mainly because of decreases in chemical manufacturing and in beverage and tobacco manufacturing.

Manufacturing of durable goods was unchanged in August. There was a notable decline in miscellaneous manufacturing and, to a lesser extent, in primary metal manufacturing. The declines offset gains in the manufacturing of computer and electronic products, fabricated metal products and wood products.

Construction is unchanged

Construction was unchanged in August. A decline in residential and non-residential building construction offset growth in engineering and repair construction.

The output of real estate agents and brokers rose 2.5% in August, up for a sixth consecutive month, as activity in the home resale market increased.

Other industries

Accommodation and food services grew 1.3% in August, in parallel with an increase in the number of overnight travellers to Canada.

The transportation and warehousing sector grew 0.4%, mainly as a result of gains in rail transportation and support activities for transportation.

The public sector (education, health and public administration combined) edged up 0.1%, while the finance and insurance sector edged down 0.1%.