Gross domestic product by industry

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Economic activity increased 0.1% in January after growing 0.4% in December. Growth occurred in both the goods and services industries. The energy sector recorded a robust gain as a result of strong natural gas production and a rebound in oil and gas exploration. Construction, forestry and financial services, also posted increases. However, these gains were partly offset by declines in manufacturing, retail trade and in some tourism-related industries.

Energy sector expands

The energy sector advanced 1.5% in January. Natural gas production grew sharply as a result of higher demand, particularly from the United States. However, crude oil production fell largely because of production difficulties in Eastern Canada. Oil and gas exploration rebounded (+11%) after five months of decline, while electricity production posted a gain of 1.4%, fuelled by colder weather in many parts of the country.

Output in the mining sector, excluding oil and natural gas, eased back 0.1%. Metal mines decreased 1.9%. A drop in copper prices as well as reduced construction activities in the United States had a significant role in the decline in copper mines. The decrease in metal mines was partly offset by the 2.4% gain made in the non-metallic mineral mines.

Manufacturing sector falls sharply

Manufacturing output fell 1.0% in January, after expanding rapidly the previous two months. Motor vehicles and parts production accounted for much of the decline. Overall, non-durable goods manufacturing edged up 0.4%, while durable goods retreated 1.9%. Of the 21 major manufacturing groups, 9 decreased, accounting for 50% of total manufacturing value added.

The production of motor vehicles tumbled 12% in January as the demand for both light motor vehicles and heavy duty trucks declined. Motor vehicle parts production also fell (-2.7%). Excluding motor vehicles and parts, the manufacturing sector grew 0.1%. Conversely, beverage, primary metal and fabricated metal products manufacturing leaped forward.

Industrial production (the output of mines, utilities and factories) slipped 0.1% in January. The sizeable decline in manufacturing was only partially offset by the increases in mining and utilities. Industrial production in the United States also retreated in January (-0.3%) reflecting a downturn in manufacturing and mining, while utilities were up.

Construction and real estate sectors post gains

The construction sector rose for the eighth consecutive month in January (+0.5%). Increases in non-residential construction (+0.7%) and engineering and repair work (+0.9%) neutralized the 0.3% decline in residential construction. Non-residential construction was propelled by the strength in new commercial buildings. The decrease in residential construction was the result of the ongoing decline in single-family homes. For their part, apartments and other multi-unit structures continued to move forward.

Even though residential construction receded, the home resale market was robust for a second consecutive month, enabling the real estate agents and brokers industry to register a gain of 3.8%.

Wholesale and retail trade

Following two strong consecutive monthly increases, wholesale trade edged up 0.1% in January. Decreases in sales of motor vehicles, and of household and personal products, were offset by gains in food products, building materials, and in computers and other electronic equipment.

Retail trade slipped 0.2% in January after a sizeable increase in December. Significant declines in sales by new and used car dealers caused the industry to retreat. Supermarkets also recorded a notable decline, while furniture stores jumped ahead.

Banking and brokerage activities advance

Output in the finance and insurance sector grew 0.4%. This gain was fuelled by strong activity in securities. Lending activities were also quite robust.

Other industries

Tourism-related industries overall registered declines. The accommodation industry tumbled 3.1% due to the reduced activity of hotel operators in the eastern part of the country. The late arrival of winter, particularly in Quebec, resulted in dismal output for operators catering to winter sports enthusiasts. As well, the number of overnight visitors to Canada from abroad was down 5.4% compared to December. Air transportation services also fell (-1.5%).

Available on CANSIM: tables 379-0017 to 379-0022.

Definitions, data sources and methods: survey number 1301.

The January 2007 issue of Gross Domestic Product by Industry, Vol. 21, no. 1 (15-001-XWE, free) is now available from the Publications module of our website.

Data on gross domestic product by industry for February will be released on April 30.

For general information or to order data, contact our dissemination agent (613-951-4623 or toll-free 1-800-887-4623; iad-info-dci@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Bernard Lefrançois (613-951-3622), Industry Accounts Division.

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