Statistics Canada’s offices at Tunny’s Pasture in Ottawa are shown on March 8, 2019. The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced. Statistics Canada says the increase in real gross domestic product was led by a rebound in manufacturing, after a decline in April. THE CANADIAN PRESS/Justin Tang

Canada’s GDP grows 0.2 per cent in May as manufacturing rebounds: Statcan

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May

The Canadian economy grew for a third consecutive month in May, rising 0.2 per cent overall as 13 of 20 sectors advanced, Statistics Canada reported Wednesday.

The growth in gross domestic product was above analyst estimates of 0.1 per cent growth and showed renewed strength in manufacturing, which rebounded from an April dip, as well as continued growth in construction.

Douglas Porter, chief economist at BMO Capital Markets, said May’s growth was slightly more positive than the month’s numbers indicate because Statistics Canada also revised April’s number to 0.33 per cent growth from 0.26 per cent.

“The above-expected GDP gain is all the more impressive since it overcame declines in each of wholesale, retail, utilities, and oil and gas output (oilsands production pulled back six per cent from April),” Porter wrote in a commentary.

He said the slight upward revision to April and the “sturdy” details in May put a “relatively healthier glow on the economy’s spring-time performance.”

TD senior economist Brian DePratto said the May report underscores the strength of a recovery from a weak start to 2019, but noted that manufacturing and real estate were “coming back to life after earlier setbacks.”

“That said, a recovery is a recovery, and with upward revisions to the April report, we upgrade our second quarter GDP growth tracking again, to 3.0 per cent annualized,” DePratto wrote.

Porter agreed that growth for the second quarter will be close to three per cent.

“That compares with (BMO’s) call of 2.5 per cent, and the (Bank of Canada’s) latest official estimate of 2.3 per cent for the quarter,” Porter wrote.

Statistics Canada’s GDP report said wholesale trade fell 1.4 per cent in May, after four months of growth, with all subsectors contracting except building material and supplies (up 0.4 per cent).

Retail trade contracted 0.4 in May, the first month-over-month decline since last summer, while the mining, quarrying and oil-gas extraction sector contracted 0.8 per cent after a 5.5 per cent increase in April.

Oil and gas extraction decreased 2.5 per cent in May, after two months of growth. Excluding oilsands, crude petroleum and natural gas extraction rose 1.1 per cent.

Mining, excluding oil and gas extraction, was up for a third consecutive month with a gain of 2.7 per cent.

Metal ore mining was up 2.6 per cent, non-metallic mining was up 2.1 per cent, led by an export-driven gain in potash (up 3.0 per cent). Coal mining was up 8.3 per cent on higher exports of metallurgical coal, Statistics Canada said.

READ MORE: Statistics Canada says real GDP grew 0.3% in April, tops expectations

The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

A very cheesy Christmas at Little Qualicum Cheeseworks

Annual family Christmas event, this year with raclette hot off the melting wheel

PQB crime report: Thieves pilfer cash, root beer and hand sanitizer

Oceanside RCMP receive 249 complaints in one-week period

Solutions in sight for Parksville Qualicum Beach doctor shortage

With feasibility study funded, group shares vision of ‘campus of healthcare’

Raise the curtains: New outdoor theatre coming to Parksville

A $204,000 boost comes from Island Coastal Economic Trust

VIDEO: Kenney lays out key demands for meeting with Trudeau

Alberta Premier Jason Kenney aims for clear signs of federal action on two-day Ottawa trip

Province sues over sailing incident that killed teen with disabilities

Gabriel Pollard, 16, died from injuries after marine lift failed

First Nations want Big Bar landslide cleared ASAP to allow fish passage

Leadership calling for urgent action and resources to remove obstruction on the Fraser

Assessed value of Lower Mainland homes expected to decrease in 2020

Other areas of province may see modest increases over last year’s values

Firefighters called to burning motorhome on Nanaimo’s waterfront

Nanaimo Fire Rescue extinguishes blaze Monday afternoon on Esplanade and Irwin Street

Chilliwack family’s therapy dog injured in hit and run

Miniature pit bull Fifty’s owner is a single mother facing close to $10,000 in vet bills

Cougar destroyed in Penticton area after mauling dog, killing cat

This is the first reported incident with a cougar this year in the Penticton area

Feds not enforcing standards on Hungarian duck imports, B.C. farmer says

‘You have no way of knowing what’s in the bag’

No reports yet of Canadians affected by New Zealand volcano eruption, feds say

Missing and injured included tourists from the U.S., China, Australia, Britain and Malaysia

Most Read