Canadian GDP grows 0.4 percent in November thanks to manufacturing and mining

Wednesday, 31 January 2018 21:06:15 (GMT+3)   |   San Diego
       

According to Statistics Canada, real gross domestic product (GDP) increased 0.4 percent in November, with widespread growth across industries as 17 of 20 industrial sectors increased.

Goods-producing industries rose 0.8 percent after declining 0.5 percent in October. November's gain was mainly due to increases in the manufacturing and mining, quarrying and oil and gas extraction sectors, partly as a result of restoration in production capacity.

The manufacturing sector was up 1.8 percent in November, the largest monthly increase since February 2014 as the majority of subsectors grew. Non-durable manufacturing rose 1.1 percent, while durable manufacturing jumped 2.5 percent.

The rise in durable manufacturing, the largest monthly increase since December 2011, was led by a 6.5 percent increase in transportation equipment. Following four consecutive monthly declines, which saw the industry drop by 21.5 percent, motor vehicle manufacturing rose 14.3 percent in November. Automotive vehicle assembly increased in part due to the return to production of some plant capacity following shutdowns in September and October. This increased activity was also a factor in the 8.7 percent rise in motor vehicle parts manufacturing in November. Miscellaneous transportation equipment rose 0.8 percent, while aerospace product and parts manufacturing was essentially unchanged.

Mining, quarrying, and oil and gas extraction increased 0.5 percent in November following a 1.1 percent decline in October. Mining excluding oil and gas extraction was down 2.1 percent, a second monthly decline after rising the six previous months. Coal mining dropped 7.7 percent, while metal ore mining was down 0.7 percent as all industry groups declined, with the exception of iron ore mining (+4.3 percent).

Support activities for mining and oil and gas extraction fell 4.1 percent on lower drilling and rigging services. This was a seventh consecutive decline for the subsector after a string of increases that began in the spring of 2016 and ended in April 2017.

Construction edged up 0.1 percent in November. Non-residential building construction grew 0.9 percent, while engineering and other construction activities edged up 0.1 percent. There were slight declines in residential (-0.2 percent) and repair (-0.2 percent) construction.


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