Analysis

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Real gross domestic product grew 0.6% in March, with most major industrial sectors increasing their production. Output of goods-producing industries advanced 1.4% while the service sector rose 0.3%. Manufacturing, mining and oil and gas extraction, wholesale and retail trade as well as residential construction were the main sources of growth.

Conversely, output in performing arts and spectator sports, accommodation services, and radio and television broadcasting declined as it returned to more normal levels following the Vancouver 2010 Winter Olympic Games in February. The utilities sector also retreated as unseasonably warm weather throughout most of Canada lowered the demand for both electricity and natural gas.

Manufacturing rose 1.8 % in March with 20 of the 21 major groups advancing. Manufacturers of machinery, primary and fabricated metal products as well as non-metallic mineral and food products recorded significant increases in their production.

Mining and oil and gas extraction rose 2.7% mainly as a result of a significant increase in oil extraction. Increased activity at copper, nickel, lead and zinc mines as well as at gold and silver ore mines also contributed to the growth. Support activities for mining and oil and gas extraction retreated after seven consecutive monthly increases.

Retail trade grew 1.8% in March. New and used car dealers recorded a significant increase in their volume of activity. Wholesale trade advanced 2.0% with most type of wholesalers recording an increase. In both retail and wholesale trade, there was a significant increase in the demand for building and outdoor home supplies, mirroring increased activity in construction.

Construction rose 0.9% largely on the strength of residential building construction (+2.5%). Engineering construction retreated while non residential construction edged up.

The finance and insurance sector rose 0.3% as the volume of trading on the stock exchanges went up.

First quarter 2010

Real gross domestic product grew 1.5% in the first quarter of 2010. The output of the goods-producing industries (+2.7%) increased for a second consecutive quarter, mainly on the strength of manufacturing and, to a lesser extent, construction and mining. Services-producing industries (+1.1%) continued to rise, with wholesale and retail trade leading the way.

The manufacturing sector (+4.2%) increased for a third consecutive quarter, largely due to the strength in durable goods (+5.9%). Manufacturers of primary and fabricated metals products, machinery and chemical products recorded the largest increases. The level of manufacturing activity in the first quarter of 2010 surpassed that of the first quarter 2009.

Construction advanced 2.5%, owing to an 8.2% increase in residential construction. Lower activity on the home resale market translated into a decrease in the output of real estate agents and brokers, following four quarters of growth.

Mining excluding oil and gas extraction grew 9.2% in the first quarter. Increased production at potash and metal ore mines contributed the most to the growth. Support activities for mining and oil and gas extraction grew significantly for a second consecutive quarter. Conversely, oil and gas extraction declined partly because of production difficulties.

Wholesale trade advanced 3.9%, with most type of wholesalers, notably those for building materials, recording increases. Retail trade rose 2.6%, with all major groups posting an increase with the exception of new and used car dealers.

The finance and insurance sector increased in the first quarter, as did the public sector (health, education and public administration combined).The Vancouver 2010 Olympic and Paralympic Winter Games contributed to the 4.3% increase in accommodation services.