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Gross domestic product by industry
Real gross domestic product continued the seesaw pattern observed since December 2007 with a 0.3% decline in August, partly reversing the 0.7% increase in July. Wholesale trade, manufacturing, and the energy sector, which were the main contributors to the July increase, all retreated in August. Some transportation industries, such as rail and truck transportation, were affected by the downturn in these sectors. Conversely, accommodation and food services advanced as did the public sector. Finance and insurance, and retail trade were unchanged.
Output of the energy sector decreases
Output of the energy sector decreased 0.5% in August after increasing 2.7% in July, which accounted for a large part of the July growth in total economic activity. Petroleum and natural gas extraction both declined and the pipeline transportation of natural gas dropped significantly.
Services to oil and gas extraction facilities were up significantly for a third consecutive month, returning to their early 2006 levels, as both contract drilling and rigging activities increased in August.
Output of refineries declined 4.5%, partly as a result of production disruptions at two major plants.
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 2005 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 2006, 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 2005. 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 2008. For more information about monthly GDP by industry, see the National economic accounts module on our website (www.statcan.gc.ca/nea). |
Wholesale trade drops
Wholesaling dropped 3.1% in August, more than offsetting its July gain. A significant decrease in the wholesaling of automotive products accounted for about three-quarters of the drop. Imports of automotive products, which rose significantly in July, returned to levels of recent months, while exports and retailing activities declined. The wholesaling of building materials and of personal and household goods also decreased.
Manufacturing activity falls
The manufacturing sector fell 1.1% in August, erasing its July gain. The decrease was broadly based, with 18 of the 21 major groups declining.
Significant decreases were registered in the production of wood products, plastics and rubber products, machinery, fabricated metal products and transportation equipment. The largest increase was recorded by primary metal manufacturers, which had shown strength over the previous six months.
Construction retreats
Construction retreated 0.3% in August. Residential and non-residential building construction as well as engineering and repair work declined. The continuing decrease in single-family house construction more than offset increases in multi-unit structures. Construction of non-residential buildings fell, with weakness in all types of structures in recent months.
Activity of real estate agents and brokers dropped 2.9% in August, as the home resale market continued to soften after peaking in the summer of 2007.
Retail trade stable
Value added in retail trade was stable for a second month in a row. A substantial decline at gasoline stations and new car dealers was largely offset by the increases recorded by used car dealers, alcoholic beverage vendors, home centres and hardware stores, and general merchandise stores (which include department stores).
Finance and insurance sector unchanged
The finance and insurance sector was unchanged in August. The modest rise in banking and lending services was neutralized by the lower volume of activity of stock brokerages.
Other industries
The 0.8% increase in the accommodation and food services sector was partly due to the influx of tourists to the city of Quebec for its 400th anniversary celebrations, as hotels operators reported significantly higher occupancy rates.
Available on CANSIM: table 379-0027.
Definitions, data sources and methods: survey number 1301.
The August 2008 issue of Gross Domestic Product by Industry, Vol. 22, no. 8 (15-001-XWE, free), is now available from the Publications module of our website.
Data on gross domestic product by industry for September will be released on December 1.
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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