The Canadian economy still showed some summer sizzle, growing in June and July and likely in August. Manufacturing, however, posted a decline in July. PHOTO courtesy CAMBRIO.
The Canadian economy had a surprise for the doomsayers, with Real gross domestic product (GDP) edging up 0.1% in July, after a similar increase in June (+0.1%). Advance information indicates that real GDP was essentially unchanged in August.
Eleven of the 20 industrial sectors tracked by Statistics Canada showed increases in July, with the growth in the goods-producing industries (+0.5%) partially offset by a decline in services-producing industries (-0.1%).
The mining, quarrying and oil and gas extraction sector was a strong contributor to July’s increase, expanding 1.9% in July, following slight declines in the previous two months, with growth in all three subsectors.
The manufacturing sector, however, contracted 0.5% in July, the third decline in four months, as an increase in non-durable goods manufacturing was more than offset by a decrease in durable goods manufacturing.
Durable goods manufacturing decreased 1.5% in July, as 7 of 10 subsectors fell. Leading the decline was fabricated metal product manufacturing, mainly due to a decrease in architectural and structural metals manufacturing. Adding to the drop were machinery manufacturing, non-metallic mineral product manufacturing, and furniture and related product manufacturing, while growth in transportation equipment manufacturing and miscellaneous manufacturing partially offset the decline.
Non-durable goods manufacturing was up 0.7% in July, its first increase since March, as six of nine subsectors saw growth. Contributing the most to the increase were petroleum and coal manufacturing and plastics and rubber products manufacturing, while food manufacturing (-1.8%) partially offset the gain.