Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on March 8, 2019. The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced. Statistics Canada says the increase in real gross domestic product was led by a rebound in manufacturing, after a decline in April. THE CANADIAN PRESS/Justin Tang

Canada’s GDP grows 0.2 per cent in May as manufacturing rebounds: Statcan

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May

The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced, Statistics Canada reported Wednesday.

The growth in gross domestic product was above analyst estimates of 0.1 per cent growth and showed renewed strength in manufacturing, which rebounded from an April dip, as well as continued growth in construction.

Douglas Porter, chief economist at BMO Capital Markets, said May’s growth was slightly more positive than the month’s numbers indicate because Statistics Canada also revised April’s number to 0.33 per cent growth from 0.26 per cent.

“The above-expected GDP gain is all the more impressive since it overcame declines in each of wholesale, retail, utilities, and oil and gas output (oilsands production pulled back six per cent from April),” Porter wrote in a commentary.

He said the slight upward revision to April and the “sturdy” details in May put a “relatively healthier glow on the economy’s spring-time performance.”

TD senior economist Brian DePratto said the May report underscores the strength of a recovery from a weak start to 2019, but noted that manufacturing and real estate were “coming back to life after earlier setbacks.”

“That said, a recovery is a recovery, and with upward revisions to the April report, we upgrade our second quarter GDP growth tracking again, to 3.0 per cent annualized,” DePratto wrote.

Porter agreed that growth for the second quarter will be close to three per cent.

“That compares with (BMO’s) call of 2.5 per cent, and the (Bank of Canada’s) latest official estimate of 2.3 per cent for the quarter,” Porter wrote.

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May, after four months of growth, with all subsectors contracting except building material and supplies (up 0.4 per cent).

Retail trade contracted 0.4 in May, the first month-over-month decline since last summer, while the mining, quarrying and oil-gas extraction sector contracted 0.8 per cent after a 5.5 per cent increase in April.

Oil and gas extraction decreased 2.5 per cent in May, after two months of growth. Excluding oilsands, crude petroleum and natural gas extraction rose 1.1 per cent.

Mining, excluding oil and gas extraction, was up for a third consecutive month with a gain of 2.7 per cent.

Metal ore mining was up 2.6 per cent, non-metallic mining was up 2.1 per cent, led by an export-driven gain in potash (up 3.0 per cent). Coal mining was up 8.3 per cent on higher exports of metallurgical coal, Statistics Canada said.

READ MORE: Statistics Canada says real GDP grew 0.3% in April, tops expectations

The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

$173K to support Okanagan seniors amid pandemic

United Way announces more funding for frontline programs

Vernon couple support Kidney Walk despite setbacks

Jacqueline Marioni has had two kidney transplants; both organs have rejected or are rejecting her

Vernon Vipers land prep school blueliner

Griffen Barr, from Nanaimo, was captain of Shawnigan Lake club in 2019-20

Okanagan home sales increase over last month, still below 2019 numbers: OMREB

Sales, listings see increase over May’s numbers but dwindle in comparison to 2019

Suspicious activity on Predator Ridge bike trails

A rock deliberately placed on a hazardous corner results in bolstered security, cameras

B.C. records four new COVID-19 cases, Abbotsford hospital outbreak cleared

Four senior home outbreaks also declared over, eight still active

Princeton RCMP sergeant kills cougar threatening residential neighborhood

An RCMP officer shot and killed a cougar, close to a residential… Continue reading

Pilot project approved: Penticton to allow alcohol in outdoor spaces

For almost two hours, council debated the proposed pilot project, before eventually passing it 4-2

Drugs, machete found in truck with stolen plate driven by Salmon Arm man

Chase RCMP arrest driver and have vehicle towed

RCMP, coroner investigate murder-suicide on Salt Spring Island

Two dead, police say there is no risk to the public

About 30% of B.C. students return to schools as in-class teaching restarts amid pandemic

Education minister noted that in-class instruction remains optional

Trudeau avoids questions about anti-racism protesters dispersed for Trump photo-op

Prime minister says racism is an issue Canadians must tackle at home, too

Top cop calls video of Kelowna Mountie striking suspect ‘concerning’

A video allegedly shows a Kelowna Mountie striking a man several times

B.C.’s Law Enforcement Torch Run for Special Olympics goes virtual

The annual event partnering RCMP with Special Olympians is dramatically altered by COVID-19

Most Read