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Gross domestic product by industry
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Economic activity increased 0.2% in July, its average pace since the beginning of 2007, after growing 0.2% in June and 0.3% in May. A significant increase in wholesale trade propelled the growth in July, while a drop in oil and gas extraction dampened it. The strength of the service industries (+0.3%) more than offset the 0.1% decrease in the production of goods. Gains were registered in manufacturing, construction, oil and gas exploration, and the financial sector. Declines were recorded in the forestry, retail trade, utilities, and accommodation and food services sectors.
Wholesale trade rises sharply
Wholesale trade jumped 2.3% in July, the largest monthly increase recorded since its 4.4% gain in March 2004. A surge in motor vehicle sales (including parts), combined with significant increases in sales of machinery and equipment and of personal and household products, drove this sector in July. These gains were reduced slightly by declines in the wholesaling of food and farm products.
Note to readersThe monthly gross domestic product (GDP) by industry data are chained volume estimates with 1997 as their reference year. This means that the estimates for each industry and aggregate are obtained from a chained volume index multiplied by the industry's value added in 1997. For the period 1997 to 2003, the monthly estimates are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price input-output tables. For the period starting with January 2004, the estimates are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are the industry output and input prices of 2003. This makes the monthly GDP by industry estimates more comparable with the expenditure-based GDP data, chained quarterly. Revisions With this release of monthly GDP by industry, revisions have been made back to January 2006. For more information about monthly GDP by industry, see the National Economic Accounts module on our website (http://www.statcan.gc.ca/nea). Conversion to NAICS 2002 and to reference year 2002 With the October 2007 release (August reference month), the monthly GDP by industry program will convert to the 2002 North American Industrial Classification System (NAICS) from NAICS 1997. In addition, the reference year for the chained dollar data and the base year for the constant price data will change from 1997 to 2002. More detailed information on these changes will soon be made available. For more information, please contact Bernard Lefrançois (613-951-3622; iad-info-dci@statcan.gc.ca). |
Energy sector slips
The energy sector fell 1.3% in July. Both natural gas and petroleum extraction experienced declines. Furthermore, utilities fell 1.2%. However, oil and gas exploration leaped 12.9%, a second consecutive monthly increase after four months of significant declines.
Demand for electricity and natural gas from domestic and foreign consumers contracted partly because of the unfavourable July weather. Furthermore, there apparently were ample amounts of natural gas in storage to satisfy demand in later months.
The output of the mining sector excluding oil and gas moved ahead 0.8%. The substantial gains realized by metal ore mines were partly offset by declines in non-metallic mineral mines. A robust increase in the production of iron ore resulted in a noticeable gain in exports.
Manufacturing activities advance
The manufacturing sector rose 0.4% in July, continuing an upward trend that started at the beginning of 2007. Production of both durable (+0.6%) and non-durable (+0.2%) goods contributed to the increase. Of the 21 major manufacturing groups, 12 of these, accounting for 59% of this sector's value added, saw increases.
Significant gains were made in motor vehicle manufacturing and associated parts production. The manufacturing of computer and electronic products, as well as paper and printing products also recorded gains. However, the production of beverages and wood products declined, as did the manufacturing of machinery.
Industrial production (the output of mines, utilities and factories) decreased 0.2% in July. The increase in manufacturing was neutralized by the drops in mining and utilities. In the United States, industrial production increased 0.5% in July. Both manufacturing and mining moved ahead, while utilities fell.
Construction moves forward
The construction sector advanced 0.6% in July. Residential (+0.4%) and non-residential (+0.6%) building construction, along with engineering and repair work (+0.7%), all increased. The construction of single-family homes led residential construction. However, multi-unit structures fell back and apartment construction stalled. The construction of public buildings advanced, while industrial and commercial building construction stood still.
Evidence of increased repair activities on residential and non-residential structures was provided by the upward trend since the beginning of 2007 in wholesaling and retailing activities related to construction.
The home resale market continued to rise at a healthy pace in July, resulting in a 1.1% increase for the real estate agents and brokers industry.
Retail trade retreats
After a strong showing in May, retail trade experienced its second consecutive monthly decrease, down 0.8% in July and 0.7% in June. Sales by new car dealers fell in July. Sales of clothing and general merchandise stores (which include department stores), and of food and beverage vendors, also retreated. Gains were recorded by gasoline stations, home electronics and appliances, and pharmacies and personal care stores.
Other industries
Activities in the finance and insurance sector grew 0.6%. This increase was fuelled by a rise in lending activities and mutual fund sales in July. The forestry industry lost considerable ground (-4.4%), partially as a result of a major labour dispute. The accommodation and food services sector fell back 0.9% in July. The number of international travellers to Canada dropped 4.7%, particularly that of overnight visitors from the United States (-7.1%).
Available on CANSIM: tables 379-0017 to 379-0022.
Definitions, data sources and methods: survey number 1301.
The July 2007 issue of Gross Domestic Product by Industry, Vol. 21, no. 7 (15-001-XWE, free) is now available from the Publications module of our website.
Data on gross domestic product by industry for August will be released on October 31.
For more information or to order data, contact the dissemination agent (toll-free 1-800-887-4623; 613-951-4623; iad-Info-dci@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Bernard Lefrançois (613-951-3622), Industry Accounts Division.
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