Analysis

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Real gross domestic product increased 0.1% in May after being unchanged in April. Goods-producing industries rose 0.6% led by oil and gas extraction. Construction and utilities fell back while manufacturing activity edged up.

The services-producing industries were down 0.1% largely due to lower activity in wholesale trade and by real estate agents and brokers. This marked the second consecutive month of weakness in the service sector since the beginning of 2009. Conversely, the finance and insurance sector as well as retail trade advanced in May.

Mining strengthens further

Mining and oil and gas extraction (+3.4%) increased significantly for a third consecutive month. Both oil and natural gas production rose. Support activities for mining, oil and gas extraction (+4.8%) continued their upward trend. The output of copper, nickel, lead and zinc mines also grew significantly in May.

Construction activity down for a second month

Construction declined 1.6% led by a 3.8% drop in residential building construction. Construction of single dwellings fell as did alterations and improvements work. Conversely, non-residential building construction rose 0.8%.

Real estate transactions fall significantly

Sales of existing homes fell significantly in several parts of the country in May, resulting in an 11.3% decrease in the output of real estate agents and brokers. This marked the fifth consecutive monthly decline in this industry.

Widespread decreases in wholesale trade

Wholesaling activity decreased 1.8%, with weakness in most major trade groups. The most notable declines were in other products (mainly agricultural supplies), personal and household goods, motor vehicle parts and accessories, and building materials.

Increase in the finance and insurance sector

The finance and insurance sector advanced 0.5% led by financial intermediation (loans and banking activities) and a higher volume of trading on the stock exchanges.

Retail trade expands

Retail trade grew 0.3% in May, with notable increases in clothing and accessories, and in food and beverage stores. Decreases were recorded in building and outdoor home supplies stores, mirroring the weakness in construction, and by used car dealers.

Manufacturing edges up

Manufacturing was up 0.1% in May. Manufacturers of non-durable goods increased their production 0.8%, notably those of pharmaceutical and food products. Conversely, manufacturing of durable goods fell 0.4%, particularly communication equipment and machinery.

Other industries

Forestry and logging increased 7.7% in May. Utilities decreased for a third consecutive month as the demand for electricity declined.