After falling for five consecutive months, real gross domestic product rose 0.5% in June. The increase in June was broad based, led by mining, quarrying, and oil and gas extraction and, to a lesser extent, wholesale trade, the finance and insurance sector as well as arts and entertainment.
Following five consecutive monthly declines, the output of goods-producing industries advanced 0.9% in June, primarily as a result of an increase in mining, quarrying, and oil and gas extraction. Manufacturing, the agriculture and forestry sector and utilities were also up. In contrast, construction was down.
The output of service-producing industries increased 0.3% in June, following no growth in May. Gains were notable in wholesale trade, the finance and insurance sector, the arts and entertainment sector and the public sector (education, health and public administration combined). On the other hand, retail trade was unchanged and administrative services edged down.
Mining, quarrying, and oil and gas extraction expands
Following seven consecutive monthly contractions, mining, quarrying, and oil and gas extraction expanded 3.1% in June.
Oil and gas extraction grew 3.9% in June, after declining 3.5% in April and 0.5% in May. The increase in June was mainly the result of a 9.4% gain in non-conventional oil extraction. Non-conventional oil extraction rebounded in June from maintenance shutdowns and production difficulties in April and May. Conventional oil and gas extraction was unchanged in June.
Chart 2 Chart 2: Oil and gas extraction expands in June
Oil and gas extraction expands in June
Chart 2: Oil and gas extraction expands in June
Mining and quarrying (excluding oil and gas extraction) increased 2.6% in June. Metal ore, coal and non-metallic mineral mining all advanced in June.
Support activities for mining and oil and gas extraction decreased 2.7%, after rising 4.6% in April and 1.9% in May.
Wholesale trade rises while retail trade is unchanged
Following a 1.6% increase in April and a 1.1% decline in May, wholesale trade rose 1.0% in June. Increases were notable in wholesaling of personal and household goods, motor vehicles and parts, machinery, equipment and parts as well as building materials and supplies. Conversely, activities at miscellaneous wholesalers, which include agricultural supplies, were down.
Retail trade was unchanged in June, after increasing 0.4% in May. There was increased activity at electronics and appliance stores as well as food and beverage stores in June. On the other hand, declines were posted at building materials and garden equipment and supplies dealers and at clothing and clothing accessories stores.
The finance and insurance sector expands
The finance and insurance sector expanded 0.7% in June, mainly as a result of increases in banking services and, to a lesser extent, financial investment services. In contrast, insurance services were down.
The arts and entertainment sector increases
The arts and entertainment sector increased 6.4% in June, mainly as a result of the FIFA Women’s Soccer World Cup that was hosted by Canada.
Manufacturing output grows
Following a 1.6% contraction in May, manufacturing output grew 0.4% in June.
Non-durable goods manufacturing advanced 0.9% in June, primarily because of increases in the manufacturing of chemical, food and textile, clothing and leather products. In contrast, decreases were posted in petroleum and coal product manufacturing, plastic and rubber product manufacturing and, to a lesser degree, beverage and tobacco manufacturing.
Durable-goods manufacturing was unchanged in June. Notable decreases were recorded in fabricated metal products, machinery, and primary metal manufacturing. On the other hand, miscellaneous manufacturing, computer and electronic product manufacturing, as well as wood product and non-metallic mineral products manufacturing were up.
Construction declines
Construction fell 0.6% in June. Residential and non-residential building and repair construction were down in June, while engineering construction edged up.
The output of real estate agents and brokers declined in June, after rising for four consecutive months.
Other industries
The public sector (education, health and public administration combined) edged up 0.1% in June. Increases in education services outweighed declines in public administration.
Utilities edged up 0.1% in June, after declining for three consecutive months. Natural gas distribution was up in June, while electricity generation, transmission and distribution was down.
Leave a Reply
You must be logged in to post a comment.