Canada’s economy expanded by 0.3 per cent in May, as a large decline in oil and gas output due to wildfires was offset by growth in the service sector.
Statistics Canada reported Friday that more than half of all industries posted growth, but the headline figure was dragged down by declines in a few key industries. The energy sector, normally a source of strength, shrank by 2.1 per cent, because it was “severely impacted” by wildfires.
“This was the sector’s first decline in five months and its largest since August 2020,” the agency said.
Oil and gas extraction fell by 3.6 per cent during the month as a result of the forest fires in Alberta. That was the biggest decline since April 2020. “The fires primarily impacted installations in the western parts of the province, from Edmonton to the Rocky Mountains’ Foothills in the Clearwater, Montney and Duvernay formations,” Statistics Canada said.
Other industries
Residential building construction was another drag on growth, as activity fell by 1.8 per cent. That was the first decrease in five months and it was driven by declines in home alterations and improvement, and construction of new single-detached homes.
On the positive side of the ledger, the wholesale and manufacturing sectors grew, as previous supply-chain bottlenecks continued to ease.
The 0.3 per cent growth figure for May is slightly below the advanced forecast of 0.4 per cent that the data agency had previously anticipated.
Advanced data for June suggests the May growth in GDP was short-lived, as the next month is on track for a 0.2 per cent contraction.
“Economic activity popped higher in May, but a reversal in June suggests that momentum is beginning to falter,” Desjardins economist Royce Mendes said of the numbers.
Doug Porter, an economist with Bank of Montreal, says that the data released Friday suggest the economy is on track to grow by about 1.2 per cent in the second quarter as a whole. That’s less than the Bank of Canada is forecasting, and about half the 2.4 per cent pace seen in the U.S. economy over the same period.
“Growth is going to struggle to stay firmly in the positive column in the second half of the year, and we are likely to see more back-and-forth months like May and June resulting in very slow growth overall,” he said.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
