Gross domestic product by industry, June 2020
Real gross domestic product (GDP) grew 6.5% in June, following a 4.8% increase in May, the largest monthly increase since the series started in 1961. While May and June's gains offset some of the March and April declines, economic activity was about 9% below February's pre-pandemic level.
Both goods-producing (+7.5%) and services-producing (+6.1%) industries were up as 19 of 20 industrial sectors posted increases in June.
Given the unprecedented economic situation brought on by the COVID-19 pandemic and the demand for trusted information, Statistics Canada continues to provide an advanced aggregate indicator of the state of the Canadian economy. Preliminary information indicates an approximate 3% increase in real GDP for July. Output was up in a number of sectors, with growth primarily led by manufacturing, health care and social assistance, wholesale trade, construction, and accommodation and food services. Owing to their preliminary nature, these estimates will be revised on September 30 with the release of the official GDP data for July.
The manufacturing sector grew 14.6% in June following an 8.1% expansion in May. Growth in durable and non-durable manufacturing contributed to the largest monthly increase since the series began in 1961, with many factories operating at a much higher capacity in June, as reported by the Monthly Survey of Manufacturing. Despite the continued gains in June, manufacturing activity was about 12% below February's pre-pandemic level.
Durable manufacturing jumped 22.0%, a second consecutive monthly gain, as all 10 subsectors increased in June. Contributing the most to the gain was a 57.0% rise in transportation equipment manufacturing, as motor vehicle and parts plants continued to scale up production, following a pandemic-induced shutdown, and aerospace (+3.6%) and miscellaneous transportation manufacturing (+9.4%) posted increases. Machinery manufacturing expanded 39.4% as most industries posted double-digit growth.
Non-durable manufacturing increased 7.5%. Output was up in seven of nine subsectors, with growth primarily led by plastic and rubber products (+29.7%), chemical (+7.4%) and food manufacturing (+5.8%), while declines in clothing and leather (-21.7%) and paper manufacturing (-0.8%) offset some of the increase.
Retail trade up, surpasses the pre-pandemic level of activity
Retail trade jumped 22.3% in June, surpassing the pre-pandemic level of activity. Provinces and territories continued reopening their economies and easing gathering restrictions, resulting in increased retailing activity at traditional brick-and-mortar stores as consumers resumed in-person shopping in newly reopened businesses. Motor vehicle and parts dealers contributed the most to the growth with a 57.4% jump in June. Many other non-essential retailers increased markedly, including clothing and clothing accessories (+139.2%), furniture and home furnishings stores (+67.4%) and sporting goods, hobby, book and music stores (+64.3%), which all benefited from phased reopening of malls and shopping centres across the country as retailing activity rebounded. Only non-store retailers (-3.5%) were down in June, following three months of strong expansion.
Wholesale trade increases
The wholesale sector grew 15.8% in June, the largest monthly increase since the series began in 1961. All nine subsectors expanded, led by motor vehicle and motor vehicle parts and accessories wholesaling (+62.6%), personal and household goods (+18.7%) and machinery, equipment and supplies (+10.2%). Building materials and supplies wholesaling (+15.8%) also increased, as construction activity across the country continued to grow.
Following a 17.3% jump in May, the construction sector rose 9.4% in June as continued easing of emergency restrictions across the country contributed to the return to nearly normal levels of activity at construction sites, with activity being about 4% below pre-pandemic levels. Residential construction grew 7.1% as increases in multi-unit dwellings construction and home alterations and improvements more than offset lower single-unit construction. Non-residential construction rose 11.0%, surpassing the pre-pandemic level of activity, as all three components were up. Both engineering and other construction (+10.2%) and repair construction (+11.5%) grew for the second month in a row.
The public sector expands
The public sector (education, health care and public administration) rose 3.5% in June, as all three components were up. The output of health and social services rose 7.0%, led by a 19.1% increase in ambulatory health care services (services provided by offices of physicians, health practitioners, dentists, medical and diagnostic laboratories) attributable to the continued reopening of activity across the country. Output was approximately 22% lower than February's pre-pandemic level, as many health care providers' offices continued to operate at a reduced capacity, including restricting the number of appointments to limit the spread of COVID-19. Nursing and residential care facilities (+3.8%) and social assistance (+3.5%) were also up, while hospitals edged up 0.1%. Public administration (+2.1%) and education services (+0.9%) also grew.
Real estate and rental and leasing increase
Real estate and rental and leasing grew 2.5% in June. Activity at the offices of real estate agents and brokers jumped 65.2% in the month, following a 56.4% increase in May, as home resale activity in all major urban centres saw double-digit increases. The output of real estate agents and brokers was about 7% below February's pre-pandemic level.
Accommodation and food services grow
Accommodation and food services jumped 28.5% in June. Activity at food services and drinking places rose 27.2% as dining-in options became more available, provinces and territories continued to lift emergency restrictions, and patios continued to open. Traveller accommodations, recreational vehicle parks and recreational camps grew by one-third (+33.1%), in part as some Canadians opted for a closer-to-home vacation, with varying sets of rules for interprovincial travel across the country and continued international travel restrictions in place. However, output was 58% below the pre-pandemic level.
Transportation and warehousing sector grows
The transportation and warehousing sector rose 8.0%, as 9 of the 10 subsectors were up. Leading the growth were truck transportation (+12.3%) and support activities (+14.4%). Urban transit (+38.6%) as well as taxi and limousine services (+30.7%) also benefited from the continued reopening of the economy. A decline in rail transportation (-2.5%) offset some of the gains.
Mining, quarrying, and oil and gas extraction sector declines
Mining, quarrying, and oil and gas extraction declined 4.7%, primarily as a result of a 58.0% drop in support activities for mining, and oil and gas extraction due to lower drilling and rigging services. Oil and gas extraction edged up 0.3%, as a 4.2% increase in oil and gas extraction (except oil sands) was partly offset by a 3.3% contraction in oil sands extraction, due to lower synthetic oil production in Alberta. Mining and quarrying (except oil and gas) expanded 0.9% as increases in non-metallic mineral mining (+5.3%) and coal (+5.4%) more than offset a decline in metal ore mining (-1.7%).
The professional, scientific and technical services sector was up 2.9% in June, as all industries increased.
Finance and insurance grew 2.2% as insurance carriers and related activities (+5.5%), credit intermediation and monetary authorities (+1.5%) and financial investment services, funds and other financial vehicles (+0.7%) grew.
Personal and laundry services (services provided by hair salons, beauty parlors, funeral homes, laundry services, etc.) increased 23.9% as many businesses providing such services gradually reopened across the country.
The arts, entertainment and recreation sector grew 7.2% as a result of an increase in amusement and recreation activities.
Second quarter 2020
Government-mandated closures, travel restrictions and physical distancing measures to slow the spread of COVID-19 remained fully in place to start the second quarter. These gradually eased, providing households, businesses and public institutions avenues to begin the restart of the Canadian economy in May and June—following the steepest drops in economic activity on record, in March and April.
The output of services-producing industries plummeted 10.8%, the largest quarterly decline since the beginning of the time series in 1961, while goods-producing industries fell 13.2%, marking the fourth quarterly decline in a row. Overall, the decreases were widespread across the economy, with 19 of the 20 sectors declining in the second quarter.
The main contributor to the decline in the services-producing industries was transportation and warehousing (-27.1%), as almost all subsectors decreased. Air transportation plummeted 95.0%, as international travel restrictions first implemented in March persisted throughout the quarter. Significant declines in transit, ground passenger and scenic and sightseeing transportation (-63.2%) were mostly attributable to an 80.6% decrease in the urban transit systems, as work from home initiatives and temporary or permanent business closures severely reduced the demand for public transit in most cities. Support activities for transportation (-27.6%) were down for a second consecutive quarter, while postal service, couriers and messengers grew 7.6%.
Accommodation and food services declined by half (-50.0%), the second quarterly decrease in a row, as both components fell significantly. Activity at food services and drinking places dropped 45.3%, while accommodation services decreased sharply (-60.3%) as measures to reduce the spread of COVID-19 kept Canadians home throughout the quarter.
The public sector was down 8.6%, following a 1.8% decline in the first quarter, as all three components decreased. The health care and social assistance sector fell 12.7%, mainly as a result of a 26.9% drop in ambulatory health care services (services provided by offices of physicians, health practitioners, dentists, medical and diagnostic laboratories, etc.). Educational services recorded a 9.6% decrease, the second consecutive quarterly decline.
Wholesale trade fell sharply (-14.8%) in the second quarter, the third consecutive quarterly decline, as eight of nine subsectors were down. The decline was led by a 39.6% decrease in motor vehicles and motor vehicle parts and accessories, as production of motor vehicles and parts stopped for much of the second quarter due to the restrictive measures put in place to limit the spread of COVID-19. Personal and household goods wholesalers (-18.5%) also decreased, led by declines in the wholesaling of textiles, clothing and footwear.
Manufacturing was down 18.9%, the fifth consecutive quarterly decrease, and was the largest contributor to the decline in goods-producing industries. Durable manufacturing decreased by one-quarter (-24.9%), as all 10 subsectors declined. Transportation equipment (-37.2%) posted the largest decline as all underlying industries were down. Motor vehicles and parts manufacturing (-57.1%) were particularly affected by the shutdown of all assembly plants. Non-durable manufacturing decreased 12.1% as all nine subsectors fell. Leading the decline were decreases in petroleum and coal product manufacturing (-21.2%), food manufacturing (-9.1%), and plastics and rubber product manufacturing (-22.5%). Most manufacturing establishments were operating at reduced capacity during the second quarter due to the COVID-19 measures implemented since mid-March by different levels of government.
The construction sector (-11.9%) was down for a third consecutive quarter as all types of construction declined. Engineering and other construction activities (-14.0%) and residential construction (-9.0%) led the decreases.
Mining, quarrying, and oil and gas extraction (-14.8%) saw the biggest drop since the beginning of the series in 1961. Support activities for mining, and oil and gas extraction contracted by more than half (-51.3%), led by declines in drilling and rigging, which fell sharply in the quarter. Oil and gas extraction decreased 7.9% in response to worldwide oil oversupply and lower prices, coupled with lower demand due to the COVID-19 pandemic. Mining and quarrying (except oil and gas) fell 12.4%, posting a fourth consecutive quarterly decline.
Utilities decreased 1.4%, the fourth quarterly decline in five quarters, while agriculture, forestry, fishing and hunting (+1.6%) was the only sector that increased in the second quarter.
Monthly gross domestic product by industry at basic prices in chained (2012) dollars – Seasonally adjusted
Quarterly gross domestic product by industry at basic prices in chained (2012) dollars – Seasonally adjusted
Sustainable development goals
On January 1, 2016, the world officially began implementing the 2030 Agenda for Sustainable Development—the United Nations' transformative plan of action that addresses urgent global challenges over the next 15 years. The plan is based on 17 specific sustainable development goals.
The release on gross domestic product by industry is an example of how Statistics Canada supports global sustainable development goal reporting. This release will be used to help measure the following goal:
Note to readers
Monthly data on gross domestic product (GDP) by industry at basic prices are chained volume estimates with 2012 as the reference year. This means that the data for each industry and each aggregate are obtained from a chained volume index multiplied by the industry's value added in 2012. The monthly data are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price supply and use tables (SUTs) up to the latest SUT year (2016).
For the period starting in January 2017, data are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are 2016 industry prices.
All data in this release are seasonally adjusted. For information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.
With this release of monthly GDP by industry, revisions have been made back to January 2019.
Each month, newly available administrative and survey data from various industries in the economy are integrated, resulting in statistical revisions. Updated and revised administrative data (including taxation statistics), new information provided by respondents to industry surveys, and standard changes to seasonal adjustment calculations are incorporated with each release.
Real-time table 36-10-0491-01 will be updated on September 14.
Data on GDP by industry for July will be released on September 30.
The User Guide: Canadian System of Macroeconomic Accounts (13-606-G) is available.
The Methodological Guide: Canadian System of Macroeconomic Accounts (13-607-X) is also available.
The Economic accounts statistics portal, accessible from the Subjects module of the Statistics Canada website, features an up-to-date portrait of national and provincial economies and their structure.
For more information, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca).
To enquire about the concepts, methods or data quality of this release, contact Ederne Victor (613-863-6876), Industry Accounts Division.