Tuesday, October 5, 2004

Economy inches up

ECONOMIC output rose for the fifth month in a row in July, but the gain was only 0.1%.

Gross domestic product – the broadest measure of goods and services produced – got a boost in July from three sectors: manufacturing; wholesale and retail trade; and financial services.

However, the oil patch, construction, and travel and tourism related services held the reins on economic expansion.

The economy had posted a solid 0.4% gain in June, following two months of 0.1% increases. During the past three months, the goods producing sector has been the main source of growth.

South of the border, the US Index of Industrial Production indicated growth of 0.6% in July, led by the manufacturing and mining sectors.

Output in Canada’s manufacturing sector rose 0.3% in July after a 1.6% surge in June driven by exports. Growth in manufacturing output was concentrated in wood products, fabricated metals, chemicals, information and communication technologies products and motor vehicles.

Mining, oil and gas

Output in the mining, oil and gas sector edged up 0.2% after declining 0.8% in June. High crude oil prices did little to stimulate activity as both oil and gas extraction and drilling activities were lower in July.

Metal ore mining fell as extraction of iron ore plummeted 24% in the wake of labour disruptions.

Activity in both residential and non-residential building receded for a fourth consecutive month. Housing starts were down in every region except Quebec, which posted a 8.0% increase, and New Brunswick, where there was no change.

For more information, contact Bernard Lefrançois (613-951-3622), Industry Measures and Analysis Division.

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© 2004, Statistics Canada.