Canadian GDP rises 0.2 percent in September on expanded mining activity

Friday, 01 December 2017 00:15:58 (GMT+3)   |   San Diego
       

According to Statistics Canada, real gross domestic product (GDP) rose 0.2 percent in September after edging down 0.1 percent in August. Goods-producing (+0.4 percent) and services-producing (+0.1 percent) industries rose as 12 of 20 industrial sectors grew, led by the mining, quarrying and oil and gas extraction sector.

For the sixth month in a row, the mining and quarrying (except oil and gas) subsector expanded, rising 0.4 percent in September. Metal ore mining (+1.6 percent) grew for the third consecutive month, led by increases in iron ore (+10.2 percent) and gold and silver mining (+4.7 percent). Partly offsetting the growth were declines in copper, nickel, lead and zinc mining (-2.4 percent) and other metal ore mining (-4.0 percent).

The construction sector rose for the fourth consecutive month, up 0.4 percent in September. Except for a decline in May due in part to a strike affecting unionized construction workers in Quebec, this sector has been up every month since November 2016.

Residential construction was up 1.0 percent in September as single, double and row dwelling unit construction grew, along with home alterations and improvements. Repair construction increased 1.5 percent, the largest increase since November 2016, in part as a reflection of favorable weather conditions. Engineering and other construction activities declined 0.6 percent while non-residential construction contracted 0.3 percent as a result of lower industrial and public construction.

Transportation and warehousing grew 0.5 percent as six of nine subsectors increased. Rail transportation was up 4.4 percent as movement of coal, grain and fertilizer, intermodal and other freight by rail increased. Pipeline transportation expanded 1.3 percent, as crude oil and other pipeline transportation rose 2.6 percent while pipeline transportation of natural gas edged down 0.1 percent. After three consecutive increases, air transportation was down 0.4 percent in September.

Manufacturing was essentially unchanged, as growth in non-durable (+0.4 percent) was offset by a decline in durable (-0.4 percent) manufacturing.


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