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Gross domestic product by industry
Economic activity increased 0.1% in November, after growing 0.2% in October and 0.1% in September. So far, in the second half of 2007, monthly economic growth has remained modest compared with the first half.
In November, output of the service industries increased 0.2% while the production of goods declined 0.2%. Gains in service industries were widespread, with retail trade as well as arts and entertainment posting the strongest advances. Small increases were also registered in construction and utilities. Conversely, forestry, manufacturing, mining and wholesale trade declined.
Retail trade rises
Retail trade rose 0.4% in November. Significant increases in sales by computer, convenience and general merchandise stores (which include department stores) propelled the sector. Additional momentum came from gasoline stations and pharmacies. However, these increases were dampened by reduced sales at new car dealers and furniture and home electronics stores.
Note to readersThe monthly gross domestic product (GDP) by industry data are chained volume estimates with 2002 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 2002. For the 1997 to 2004 period, 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 2005, 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 2004. 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 2007. For more information about monthly GDP by industry, see the National economic accounts module on our website (http://www.statcan.gc.ca/nea). |
Manufacturing retreats
Manufacturing output decreased 0.3% in November, reaching its second lowest level since the beginning of 2007. The November decline occurred as the Canadian dollar appreciated a further 0.8% vis-à-vis its US counterpart, following two months of much stronger appreciation. The 0.9% decline in durable goods overshadowed the 0.6% increase in non-durable manufacturing.
Of the 21 major manufacturing groups, 12 decreased, accounting for 75% of total manufacturing value added. In particular, the production of motor vehicles and parts, and primary metal products fell. Conversely, paper production leaped forward as raw materials began to flow again. A major labour dispute affecting the West Coast forest industry, which ended in late October, had significantly reduced the supply of raw materials to producers in previous months. Furthermore, the output of refineries increased following two months of partial shutdowns for maintenance.
Energy sector slips
The energy sector slipped 0.1% in November. Natural gas and petroleum extraction contracted 0.5%. The quantity of natural gas in storage remains high in both Canada and the United States. Furthermore, natural gas distribution declined 2.0% in November, as industrial demand returned to normal levels, while the distribution of natural gas to residential and commercial users increased. The production of electricity advanced 0.5% in November.
The output of the mining sector excluding oil and gas eased back 0.2% in November. The 2.1% drop registered by the metal ore mines outweighed the 1.8% increase in non-metallic mineral mines. Support activities for mining and oil and gas extraction advanced 0.2%.
Industrial production (the output of mines, utilities and factories) decreased 0.2% in November. The increase in utilities was not enough to offset the declines in manufacturing and mining. In the United States, industrial production rose 0.3% in November, as both manufacturing and mining moved ahead, while utilities stood still.
Construction up slightly
The construction sector edged up 0.1% in November. The increases in non-residential building construction (+0.1%) and engineering and repair work (+0.7%) outpaced the 1.0% drop in residential construction. Commercial building construction posted a gain, while industrial and public building construction retreated. The increases in double and row house construction were not enough to offset the declines in apartments, single-family homes, and alterations and improvement work. The real estate agents and brokers industry remained unchanged for the month.
Wholesale trade down marginally
Wholesale trade slipped 0.1% in November, after six months of growth. This decline was largely due to the tumble in the trade of building materials. Declines were also recorded in sales of machinery and equipment, and grains. Conversely, the wholesaling of motor vehicles leaped forward. Further gains were realized in sales of apparel, computer and other electronic equipment, and office and professional equipment.
Other industries
Activities in the finance and insurance sector grew 0.1% in November. Banking activities increased 0.7% on the strength of personal loans and residential mortgages, but reduced sales of mutual funds as well as a decrease in the volume of transactions on the stock exchanges pulled down the growth of the sector.
Available on CANSIM: table 379-0027.
Definitions, data sources and methods: survey number 1301.
The November 2007 issue of Gross Domestic Product by Industry, Vol. 21, no. 11 (15-001-XWE, free) is now available from the Publications module of our website.
Data on gross domestic product by industry for December will be released on March 3.
For more information or to order data, contact our dissemination agent (613-951-4623; toll-free 1-800-887-4623; 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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