Gross domestic product by industry, June 2021

Released: 2021-08-31

Real gross domestic product (GDP) expanded 0.7% in June, following two consecutive monthly declines, placing total economic activity 1.5% below February 2020's pre-pandemic level.

Chart 1 
Real gross domestic product grows in June

Overall, 15 of 20 industrial sectors were up as both services-producing (+0.7%) and goods-producing industries (+0.9%) rose.

Preliminary information indicates an approximate 0.4% decrease in real GDP for July giving back about half of June's gain. The main decreases were in manufacturing, construction and retail trade. The continued easing of public health restrictions initiated in June supported a second strong monthly increase in accommodation and food services. Owing to its preliminary nature, this estimate will be revised with the release of the official GDP data for the July reference month on October 1.

Accommodation and food services rise

The accommodation and food services sector expanded 15.0% in June after two consecutive monthly contractions. June's increase was the largest in the sector since July 2020 (+16.5%), as both subsectors posted significant gains.

Chart 2 
Accommodation and food services grow in June

Food services and drinking places rose 18.9% in June. Loosening of public health restrictions by provincial and territorial governments, combined with hotter than typical weather across most of the country, enticed people to visit establishments' opened and expanded patios. Many municipalities across the country also continued to permit temporary patio expansions. Accommodation services rose 4.7% in June, driven by increased activity in traveller accommodation, while recreational vehicle parks and recreational camps and rooming and boarding houses declined.

Retail trade rebounds

Retail trade rose 4.0% in June, partially offsetting the declines in April and May, as 8 of 12 subsectors rose in the month.

The easing of restrictions on "non-essential retailing" resulted in increased activity at traditional brick-and-mortar stores as consumers resumed in-person shopping in newly reopened businesses.

Leading the growth were clothing and clothing accessories (+41.8%), general merchandise (+9.0%), furniture and home furnishings (+14.7%) and sporting goods, hobby, book and music (+20.1%) stores.

Food and beverage stores were down 3.0% in June as lower retailing activity at supermarkets and specialty food stores contributed to the subsector's decline. While output levels remained high, building material and garden equipment and supplies (-4.2%) and non-store retailers (-3.9%) were down for the third month in a row, offsetting some of the overall retailing growth.

Manufacturing grows

The manufacturing sector grew 1.3% in June, as both durable and non-durable goods manufacturing increased.

Durable goods manufacturing rose 2.2%, the largest monthly gain since January, as 8 of 10 subsectors increased. Transportation equipment manufacturing (+2.8%) led the growth, with every industry in the subsector rising except ship and boat building (-1.2%). Fabricated metal product (+4.2%), machinery (+1.9%) and miscellaneous (+4.5%) manufacturing were the other main contributors to the growth. Wood product (-0.8%) and furniture and related product (-1.8%) manufacturing offset some of the gains.

Non-durable goods manufacturing increased 0.4%, led by a 4.3% rise in petroleum and coal products as output at petroleum refineries grew, coinciding with higher exports of refined petroleum energy products. Chemical (+0.6%), food (+0.5%) and printing and related support activities (+2.5%) further contributed to the growth, while plastics and rubber products (-3.0%) and beverage and tobacco (-2.7%) manufacturing declined.

Public sector grows

The public sector (educational services, health care and social assistance, and public administration) rose 0.4% in June.

Public administration was up 0.4% in June as an increase in federal government public administration (+1.3%) more than offset declines in local, municipal and regional (-0.3%) and aboriginal (-0.5%) public administration.

Educational services rose 0.4% in June, led by elementary and secondary schools (+0.5%), as elementary and secondary school teachers, support staff, and administrators across the country brought to a close a school year like no other.

Health care and social assistance increased 0.4% as the majority of subsectors were up, led by ambulatory health care services (+0.6%) and hospitals (+0.5%).

Mining, quarrying and oil and gas extraction picks up

Mining, quarrying, and oil and gas extraction grew 1.7% in June, more than offsetting declines in the previous two months, as all three subsectors were up.

The oil and gas extraction subsector (+2.1%) grew for the third time in four months in June. Oil sands extraction rose 3.2% as crude bitumen and synthetic oil production in Alberta increased for the second month in a row. Oil and gas extraction (except oil sands) grew 0.8% as higher crude petroleum extraction, particularly off of Canada's North Atlantic coast, more than offset lower natural gas extraction.

Mining and quarrying (except oil and gas) rose 1.4% in June as the majority of industries were up. Metal ore mining increased 1.8% on the strength of iron ore mining (+21.8%), as production resumed following a labour stoppage at some facilities in Quebec. Copper, nickel, lead and zinc mining was up 2.5% while lower gold and silver mining (-11.9%) dampened some of the growth. Non-metallic mineral mining and quarrying rose 1.3% buoyed by higher potash (+1.7%) and diamond mining.

Support activities for mining and oil and gas extraction rose 0.4% in June as increases in drilling and rigging services more than offset lower support activities for mining.

Wholesale trade declines

Wholesale trade declined 1.5% in June, the fourth decrease in five months, as five of nine subsectors were down. The decrease was driven by lower wholesaling activity at the machinery, equipment and supplies subsector (-3.8%) as imports of construction, forestry, mining and other industrial and industry-specific machinery were down in the month. Building material and supplies wholesaling was down 5.5% as declines concentrated in lumber, millwork, hardware and other building supplies wholesaling coincided with lower construction activity in June.

Offsetting some of declines were personal and household goods (+3.7%) and motor vehicle and motor vehicle parts and accessories (+2.4%) wholesaling.

Utilities surge on higher demand

Utilities rose 3.6% in June, the largest monthly growth rate since January 2004, led by a 4.4% increase in electric power generation, transmission and distribution. The industry posted its largest monthly growth rate since March 2002, as a record-setting heatwave in Western Canada and many parts of the country increased demand for cooling purposes. Natural gas distribution was up 1.4% while water, sewage and other systems were down 0.7%.

Transportation rises

Transportation and warehousing grew 1.1% in June as the majority of subsectors were up. Air transportation rose 85.9% as movements of passengers both domestically and internationally increased along with an uptick in the movement of goods. Nevertheless, the air transportation subsector was nearly 90% below its pre-pandemic level of activity.

Support activities for transportation (+1.3%) and truck transportation (+0.8%) were up while pipeline transportation grew 0.6% as a result of higher crude oil movement. Offsetting some of the gains were postal service, couriers and messengers (-1.6%) and rail transportation (-1.1%).

Construction continues to cool

Construction was down 0.9%, following a 2.4% decline in May, as most types of construction activities were down in June.

Residential building construction was down 2.3% in June, decreasing for the second consecutive month after reaching a record high in April. The construction of all types of residential buildings was down, with single-family homes and doubles contributing the most to the decline. Non-residential building construction decreased 1.1%, the third consecutive monthly decline, as lower commercial and industrial building and structure construction more than offset growth in institutional building construction.

Engineering and other construction activities increased 1.4% while repair construction decreased 0.9%.

Other industries

Activity at the offices of real estate agents and brokers decreased 7.5% in June, down for the third consecutive month, as housing resale activity slowed across the country with Ontario, British Columbia and Alberta accounting for most of the slowdown.

The arts, entertainment and recreation industries grew 6.4% in June following two months of decline. The amusement, gambling and recreation industries (+9.1%) led the growth as loosening of public health measure across the country enabled some facilities to begin or continue reopening in June.

Finance and insurance edged up 0.2% in June, the fifth increase in six months, as credit intermediation and monetary authorities (+0.4%) and financial investment services, funds and other financial vehicles (+0.2%) were up while insurance carriers and related activities (-0.3%) contracted.

Professional, scientific and technical services grew 0.3% in June as all industries except legal services (-0.6%) were up.

Chart 3 
Main industrial sectors' contribution to the percentage change in gross domestic product

Second quarter of 2021

After three consecutive quarters of growth, real gross domestic product (GDP) by industry was essentially unchanged in the second quarter. Increases and decreases were evenly split in the quarter as 10 sectors increased and 10 sectors decreased. Both goods-producing and services-producing industries were essentially unchanged.

The public sector (educational services, health care and social assistance, and public administration) rose 0.7% in the second quarter as two of the three components were up. Health care and social assistance services (+1.6%) led the growth due to the continued expansion of ambulatory services (+2.1%), hospitals (+1.2%), nursing and residential care facilities (+1.3%) and social assistance (+0.9%), each up for the fourth consecutive quarter. Public administration expanded 0.9%. Meanwhile, educational services contracted 0.8% as the Ontario government delayed Spring Break for elementary and secondary school from March to April, thus reducing activity in the second quarter.

Despite declines in May and June, the construction sector continued to expand for the fourth consecutive quarter but at a slower pace (+1.2%). Growth in residential building construction (+2.9%) and engineering and other construction activities (+1.3%) more than offset contractions in non-residential building (-1.3%) and repair construction (-0.8%).

Accommodation and food services expanded 3.7% in the second quarter, as both subsectors grew after the lifting or easing of public health restrictions across several provinces in late May and early June.

The professional, scientific and technical services sector expanded 0.8%, up for the fourth consecutive quarter. Computer systems design and related services (+1.3%), accounting, tax preparation, bookkeeping and payroll services (+1.2%), and architecture, engineering and related services (+0.7%) contributed the most to the growth while legal services (-0.6%) declined.

After three consecutive increases, the manufacturing sector contracted 1.0% in the second quarter, putting downward pressure on overall economic growth. Non-durable goods manufacturing fell 0.5% as plastics and rubber products production (-5.5%) contributed the most to the decline. Durable goods manufacturing was down 1.4%, mainly driven by the contraction in transportation equipment manufacturing (-6.8%), as the global semiconductor chip shortage contributed to disruptions in the manufacturing of motor vehicles and parts in the second quarter.

The real estate and rental and leasing sector declined 0.7%, its first contraction since the second quarter of 2020. With home resale activity cooling down in several markets across the country, activity in the offices of real estate agents and brokers contracted 15.3%.

Retail trade fell 1.6% in the second quarter, as activity weakened in health and personal care (-4.0%), building material and garden equipment (-4.5%), general merchandise (-3.2%), food and beverage (-1.6%) and clothing and clothing accessories (-4.2%) stores. Wholesale trade contracted 1.3%, driven by declines in machinery, equipment and supplies (-1.9%), building material and supplies (-3.2%) and miscellaneous (-2.9%) wholesalers.

Chart 4 
Main industrial sectors' contribution to the percent change in gross domestic product, second quarter

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 following 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:

Products

The User Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-606-G) is available.

The Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-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.

Contact information

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.