Canadian GDP in manufacturing, transportation, and mining sectors increases in July

Friday, 28 September 2018 21:24:55 (GMT+3)   |   San Diego
       

According to Statistics Canada, real gross domestic product (GDP) grew 0.2 percent in July after essentially no change in June. This increase was concentrated as 12 of 20 sectors were up, led by growth in manufacturing, wholesale trade, utilities and transportation and warehousing.

The output of goods-producing industries expanded 0.3 percent after edging down in June, while services-producing industries were up 0.2 percent.

The manufacturing sector was up 1.2 percent in July, its strongest growth since November 2017, as output of both non-durable and durable manufacturing rose.

Durable manufacturing rose 0.3 percent as 7 of 10 subsectors grew. Wood products (+2.1 percent), fabricated metal products (+1.1 percent) and machinery manufacturing (+0.8 percent) led the increase, while declines in furniture and related products (-5.2 percent) and miscellaneous manufacturing (-4.7 percent) offset some of the growth.

Transportation and warehousing services grew 0.9 percent in July, in tandem with higher manufacturing and wholesale activity. Leading the growth was a 4.8 percent rise in rail transportation due to increased rail movement of petroleum, chemicals, metals and minerals, along with grain and fertilizer products. Truck transportation (+1.1 percent), support activities for transportation (+0.8 percent) and transit, ground passenger, scenic and sightseeing transportation (+0.5 percent) were also up. Pipeline transportation declined 0.9 percent as both pipeline transportation of natural gas (-1.6 percent) and crude oil and other pipeline services (-0.2 percent) decreased.

The construction sector declined for the third time in four months, with a 0.6 percent decrease in July. Residential construction was down 1.5 percent, the largest decline since a strike-influenced decrease in May 2017, on lower construction of most types of structures along with a decline in home alterations and improvements. Non-residential construction declined 0.5 percent as public and commercial construction contracted. The decline in repair construction (-0.3 percent) was fully offset by growth in engineering and other construction (+0.2 percent).

Following four months of growth in the first half of 2018, the mining, quarrying and oil and gas extraction sector contracted for a second consecutive month, down 0.3 percent in July.

Mining excluding oil and gas extraction was up 3.8 percent in July. Metal ore mining increased 3.6 percent, in part due to a 43.6 percent rise in iron ore mining as production resumed at mines affected by work-stoppages in the second quarter. Offsetting some of the growth was a 7.9 percent decline in copper, nickel, lead and zinc as production was reduced in response to lower export demand.


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