Canada under recession: GDP dropped by 0.2% more in May, down for a fifth consecutive month
Ontario – Real gross domestic product fell 0.2% in May, the fifth consecutive monthly decrease. The decline in May was mostly a result of contractions in manufacturing, mining, quarrying, and oil and gas extraction as well as wholesale trade. The output of goods-producing industries fell 0.6% in May, down for a fifth consecutive month, primarily as a result of declines in manufacturing and mining, quarrying, and oil and gas extraction.
After increasing for three consecutive months, the output of service-providing industries edged down 0.1% in May. Declines were notable in wholesale trade, the public sector (education, health and public administration combined), the finance and insurance sector, professional services as well as transportation and warehousing services. Conversely, retail trade as well as accommodation and food services increased.
Manufacturing output contracted 1.7% in May, following no growth in April. Durable-goods manufacturing fell 2.4% in May, as almost all major groups lost ground. Non-durable goods manufacturing was down 0.7% in May, primarily because of declines in the manufacturing of food as well as beverage and tobacco. Decreases were also posted in textile, clothing and leather manufacturing, chemical manufacturing as well as printing and related support activities.
Mining, quarrying, and oil and gas extraction fell 0.7% in May, down for a seventh consecutive month. Oil and gas extraction fell 1.0% in May, after decreasing 3.4% in April, mainly as a result of a decline in conventional oil and natural gas extraction. Non-conventional oil extraction was also down. Mining and quarrying (excluding oil and gas extraction) was down 0.8% in May.
Support activities for mining and oil and gas extraction increased 2.8% in May, after rising 9.6% in April, as both drilling and rigging services advanced again. Following a 1.6% gain in April, wholesale trade fell 1.0% in May. Declines were notable in wholesaling of machinery, equipment and supplies, miscellaneous wholesaling (which includes agricultural supplies) as well as motor vehicle and parts wholesaling. On the other hand, food, beverage and tobacco wholesaling and farm products wholesaling were up.
Retail trade rose 0.5% in May after a 0.3% decline in April, led by increases in the activities of building material and garden equipment and supplies dealers as well as electronics and appliance stores. Construction grew 1.0% in May, as engineering and repair construction as well as residential and non-residential building construction advanced. The output of real estate agents and brokers rose 2.1% in May, up for a fourth consecutive month.
The finance and insurance sector declined 0.3% in May. A decrease in banking services outweighed increases in financial investment and insurance services. Utilities declined 1.4% in May, down for a third consecutive month. The public sector (education, health and public administration combined) edged down 0.1% in May. Declines in educational and health care services more than offset an increase in public administration. Accommodation and food services were up 0.9% in May, in parallel with an increase in the number of overnight travelers to Canada.