October 15, 2012

National GDP increases slightly

The Canadian economy expanded slightly in July led by the manufacturing and utilities industry, while construction activity decreased.

Statistics Canada recently reported that real gross domestic product (GDP) increased by 0.2 per cent in July, after edging up 0.1 per cent in June.

“Construction edged down 0.1 per cent in July, as declines in residential building and non-residential building construction outweighed the increase in engineering construction and repair work,” stated the report.

Mining declined 0.3 per cent in July.

Oil and gas extraction decreased 0.2 per cent in the same month, as a decline in crude petroleum production outweighed an increase in natural gas extraction.

Support activities for mining and oil and gas extraction also fell (-2.9 per cent), as drilling and rigging services decreased.

Mining, excluding oil and gas extraction, grew 0.3 per cent in July, as increased output at coal and metal ore mines was partly offset by decreased output at non-metallic mineral mines, in particular potash.

In contrast, manufacturing grew 0.6 per cent in July, after declining 0.7 per cent in June.

Durable goods production expanded 0.7 per cent in July, mainly as a result of increases in computer and electronics products, as well as non-metallic mineral, primary metal and fabricated metal products.

However, manufacturers of machinery recorded declines.

Manufacturing of non-durable goods rose 0.6 per cent, as increases in petroleum and coal products, plastics and rubber products and chemical products more than offset decreases in printing and related support activities and paper manufacturing.

JOC NEWS SERVICE

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