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Gross domestic product by industry, June 2017

Released: 2017-08-31

Real GDP by industry

June 2017

0.3% increase

(monthly change)

Real gross domestic product (GDP) grew 0.3% in June, rising for the eighth month in a row as 14 of 20 industrial sectors grew. With the exception of October, GDP has grown every month since June 2016. Goods-producing industries rose 0.5% while service producing industries edged up 0.2%.

Chart 1  Chart 1: Real gross domestic product grows in June
Real gross domestic product grows in June

Construction leads the growth

The construction sector (+2.0%) was the main contributor to the increase in June, posting its largest gain since July 2013. The increase in the sector more than offset the decline in May, which was partly due to a strike in the last week of that month by unionized construction workers in Quebec.

Chart 2  Chart 2: Construction increases in June
Construction increases in June

Every component of the construction sector increased in June. Residential construction was up 2.7% in June, its largest increase since May 2014. There was higher output related to the construction of single, double, row and apartment housing along with increased activity related to home alterations and improvements.

Non-residential construction grew 2.9% in June, following a 2.0% decline in May, which was largely attributable to the Quebec labour strike. Repair construction was up 1.7% while engineering and other construction grew 1.1%.

Retail trade grows

The retail trade sector grew for the sixth month in a row, up 0.8% in June as 9 of 12 subsectors increased. The most significant gains in activity were at general merchandise stores, clothing and clothing accessories stores and building materials and garden equipment and supplies dealers, store types whose month-to-month fluctuations are often influenced by the weather. Partly offsetting the growth was a 1.2% decline at motor vehicle and parts dealers, as activity at new and used car dealers declined.

Transportation and warehousing expands

The transportation and warehousing sector (+0.6%) expanded in June, up for the fourth month in a row, as the majority of subsectors grew. Rail transportation increased 3.9% on higher shipments of coal, grain and fertilizer, metal and minerals and intermodal freight. Air transportation grew 2.8%, as the numbers of Canadians returning home from trips to overseas countries and from trips to the United States by plane reached new highs for the month. Partly offsetting these gains was a 2.5% decline in pipeline transportation, mainly natural gas.

Accommodation and food services grow

Accommodation and food services rose 0.8% in June, led by 1.4% growth in accommodation services. Food services and drinking places expanded 0.6%.

Manufacturing edges up

Manufacturing edged up 0.2% in June. Durable manufacturing was up 0.9% as 6 of 10 subsectors grew, led by machinery (+3.9%), furniture and related products (+3.7%) and primary metal (+2.0%). Non-durable manufacturing continued its sequence of alternating increases and declines since the beginning of 2017 with a decline of 0.7%. Most subsectors declined, led by plastics and rubber products (-2.1%) and paper (-2.1%).

Wholesale trade declines

The wholesale trade sector declined 0.4% in June following six consecutive months of growth, as seven of nine subsectors contracted. Machinery, equipment and supplies wholesaling (-0.8%), miscellaneous wholesaling (-1.3%) and food, beverage and tobacco wholesaling (-1.1%) contributed the most to the decline. There were increases at personal and household goods (+0.8%) and petroleum products (+1.0%) wholesalers.

Mining and quarrying edges down

Mining and quarrying edged down 0.2% in June following three months of increases. Oil and gas extraction contracted 0.4%, as a 2.0% decline in non-conventional oil extraction more than offset a 0.9% gain in conventional oil and gas extraction.

Mining and quarrying (except oil and gas) increased 1.2%. The 8.5% growth in non-metallic mineral mining came mainly from higher output from potash mines. Metal ore mining was down 2.7% as a result of lower output at copper, nickel, lead and zinc mines and iron ore mines as exports declined. Coal mining (-1.7%) declined for a second consecutive month following increases in March and April to meet a spike in foreign demand.

Support activities for mining and oil and gas extraction (-1.4%) was down for a second consecutive month.

Real estate and rental and leasing declines

Real estate rental and leasing declined for the second consecutive month, edging down 0.1% in June.

Following a 6.2% decline in May, activity at offices of real estate agents and brokers declined a further 5.2%. Housing resale activity was down in most markets, led by continued strong declines in and around the Greater Toronto Area.

The decline in real estate activity was also reflected in legal services (-2.7%). As a sector, professional, scientific and technical services edged up 0.3%, as the decrease in legal services was more than offset by increases in other industries.

Other industries

Utilities grew 0.7% as electric power generation, transmission and distribution was up 1.1%, while natural gas distribution declined 1.7%.

The finance and insurance sector edged up 0.1%, with every subsector up slightly.

The public sector (education, health care and public administration) rose 0.2% as education, health care and public administration all increased.

Arts, entertainment and recreation edged up 0.1% as growth in amusement, gambling and recreation industries (+0.6%) more than offset declines in performing arts, spectator sports and related industries, and heritage institutions (-0.6%).

Agriculture, forestry, fishing and hunting was down for the eighth time in nine months, declining 0.3% in June.

Chart 3  Chart 3: Main industrial sectors' contribution to the percent change in gross domestic product in June
Main industrial sectors' contribution to the percent change in gross domestic product in June

Second quarter of 2017

The value added of goods-producing industries increased for the fourth consecutive quarter, up 1.8% in the second quarter of 2017. The output of service-producing industries rose 0.9%. Growth in both goods-producing and service-producing industries was widespread, as every sector except agriculture, forestry, fishing and hunting and management of companies and enterprises reported gains.

The main contributor to growth in goods-producing industries was mining, quarrying and oil and gas extraction (+4.1%). Conventional oil and gas extraction was up 5.1%, its highest rate of growth since the fourth quarter of 2012, as both crude petroleum and natural gas extraction activities increased. Non-conventional oil extraction (+1.2%) was up as production resumed following a fire and explosion at an upgrader facility in Alberta in March. Support activities for mining and oil and gas extraction increased 16%, its fourth consecutive quarterly increase.

Manufacturing rose 0.9%, led mainly by hikes in machinery (+6.3%), petroleum and coal products (+2.8%) and computer and electronic products (+5.0%).

Construction grew 1.0% in the second quarter. The largest contribution to this increase came from engineering and other construction (+1.6%), followed by repair construction (+2.1%) and, to a lesser extent, residential building construction (+0.5%). Non-residential construction (-0.6%) declined for a seventh consecutive quarter.

Finance and insurance (+1.6%) rose for the eighth consecutive quarter and was the largest contributor to growth in service-producing industries. Retail trade (+1.9%) and wholesale trade (+1.3%) both increased for a fourth consecutive quarter. Transportation and warehousing was up 1.7%, the largest increase since the third quarter of 2015, from gains in most subsectors. The public sector (education, health and public administration) grew 0.4%.

Offices of real estate agents and brokers declined 3.5%, the industry's largest decline since the first quarter of 2015, mainly due to lower housing resale activities in and around the Greater Toronto Area.

Telling Canada's story in numbers; #ByTheNumbers

In celebration of the country's 150th birthday, Statistics Canada is presenting snapshots from our rich statistical history.

Today we look at the changing face of oil and gas in the Canadian gross domestic product (GDP).

Oil and gas extraction in Canada, like many other sectors of the economy, has evolved both technologically as well as with regard to its overall contribution to GDP. The oil and gas extraction industry accounted for 1.6% of Canada's nominal GDP in 1961 and peaked at 7.6% in 2008.

Oil and gas extraction activity in Canada is particularly susceptible to global price shocks and production disruptions, as well as to global supply and demand dynamics. For example, the 1970s oil crisis and the accompanying production disruptions outside Canada contributed to an increase in oil production. On the other hand, the global supply and demand dynamics, such as the 2008 financial crisis, had downward effects on oil production.

The growth in oil and gas extraction as a contributor to Canada's GDP also tracks the identification of new supplies during this period, such as the beginning of commercial production from the world's first oil sands mine in Fort McMurray in 1967 and the development of crude oil discoveries off the coast of Newfoundland and Labrador since the Hibernia discovery in 1979.

Overall, nominal GDP in the oil and gas extraction subsector has been rising since 2010, mainly thanks to expansions in non-conventional oil production.

The annual real GDP of the non-conventional oil extraction industry has doubled since 2007 (when the first detailed estimates of GDP of this industry became available).

Oil and gas extraction is supported by other industries such as oil and gas contract drilling and services to oil and gas extraction. These industries have undergone different cycles over time, and for the most part, their fluctuations are related to prices in the oil and gas sector.



  Note to readers

Monthly gross domestic product (GDP) by industry data at basic prices are chained volume estimates with 2007 as the reference year. This means that data for each industry and each aggregate are obtained from a chained volume index, multiplied by the industry's value added in 2007. Monthly data are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price supply and use tables (SUT) up to the latest SUT year (2013).

For the period starting with January 2014, data are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are 2013 industry prices.

This approach makes the monthly GDP by industry data more comparable with expenditure-based GDP data, which are chained quarterly.

All data in this release are seasonally adjusted. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

For more information on GDP, see the video What is Gross Domestic Product (GDP)?

Revisions

With this release of monthly GDP by industry, revisions have been made back to January 2016.

Each month, newly available administrative and survey data from various industries in the economy are integrated and result in statistical revisions. Updated and revised administrative data (including taxation statistics), new information provided by respondents to industry surveys, and standard changes to seasonal adjustment calculations are incorporated with each release.

Real-time CANSIM tables

Real-time CANSIM table 379-8031 will be updated on September 18. For more information, consult the document Real-time CANSIM tables.

Next release

Data on GDP by industry for June will be released on September 29.

Products

For more information about monthly national GDP by industry, see the System of Macroeconomic Accounts module on our website.

The User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G) is also available.

The Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-X) is also available.

Contact information

For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca).

To enquire about the concepts, methods or data quality of this release, contact Allan Tomas (613-790-6570), Industry Accounts Division.

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