Gross domestic product by industry, November 2023

Released: 2024-01-31

Real gross domestic product (GDP) grew 0.2% in November after remaining essentially unchanged for three consecutive months. The majority of the growth in November came from the goods-producing industries grouping (+0.6%), which saw its highest growth rate since January 2023, as increases in all but one sector drove the gain. Services-producing industries edged up 0.1% in November 2023 despite the impact of the strikes in the Quebec public sector that began in the month. Overall, 13 of 20 industrial sectors increased in November.

Chart 1 
Real gross domestic product grows 0.2% in November

Manufacturing sector increases in November

The manufacturing sector rose 0.9% in November, as both non-durable (+1.2%) and durable (+0.6%) goods manufacturing contributed to the increase.

Chart 2 
Manufacturing sector increases in November

Non-durable goods manufacturing increased 1.2% in November, the largest monthly gain since May 2023, as all but three subsectors contributed to the growth in November. The chemical manufacturing subsector led the increase with a 1.9% expansion in November as a number of petrochemical plants continued ramping up production following maintenance-related shutdowns in the third quarter. Partially offsetting the increase was a contraction in food manufacturing (-0.4%) in November in large part driven by a decline in the seafood product preparation and packaging industry (-18.2%).

Durable goods manufacturing posted a 0.6% increase in November, partially offsetting the decline observed in October, with 7 of 10 subsectors contributing to the growth. Primary metal manufacturing (+3.8%) led the increase, recording its largest growth rate since August 2020, in large part due to recovery from factory shutdowns that occurred in October 2023. Machinery manufacturing (+1.7%) rose for the fourth time in five months in November, led by commercial and service industry machinery manufacturing (+13.0%) and coinciding with an increase in exports in the month.

Wholesale trade rebounds after two consecutive monthly declines

Wholesale trade (+0.7%) rebounded in November as six of nine subsectors grew. Personal and household goods wholesaling (+2.1%) was the main contributor to growth in the sector, with its largest increase since January 2023. The gain in motor vehicle and motor vehicle parts and accessories wholesalers (+2.6%) in November more than offset the decrease seen in October, as activity in the subsector reached record levels in November. Building materials and supplies wholesalers (+1.6%) further contributed to growth, increasing for the third consecutive month in November and reaching its highest level since April 2022.

Transportation and warehousing expands after St. Lawrence seaway strike

Transportation and warehousing rebounded in November (+0.8%), following a decline the previous month. Rail transportation (+2.2%) was the leading contributor to the growth in November, largely driven by increases in coal and forestry product carloadings. The increase in coal carloadings was a result of increased production, particularly in British Columbia and Alberta mines, coinciding with increases in coal mining (+3.2%) in November.

In November, water (+2.9%) and truck transportation (+0.4%) rebounded from the October decline which was in large part due to the effects of the strike by the St. Lawrence seaway employees that occurred in October.

Transit, ground passenger and scenic sightseeing transportation rose 1.1% in November, with the urban transit systems industry (+1.5%) leading the increase. The industry was up for the third time in four months in November, benefitting from a continued increase in ridership, as over 135 million passenger trips were recorded in the month—the second-highest monthly total since COVID-19 pandemic mandates came into effect in March 2020.

Declines in educational services limit public sector growth

The educational services sector declined 0.3% in November 2023, its first decrease since June 2023, as strikes by Quebec workers in the sector began in November. Elementary and secondary schools (-0.2%) were the largest contributor to the decline in the sector.

While some health care workers in Quebec were also on strike during several days of the month, a large segment of health care services was deemed essential and activity in the health care and social assistance sector (+0.2%) continued to grow in November.

Information and cultural services grow for first time in six months

Information and cultural services increased 0.5% in November following five consecutive monthly declines, led by publishing industries (+1.5%) and motion picture and sound recording industries (+2.9%). Motion picture and sound recording industries experienced the largest monthly increase since September 2022, benefiting from the ending of the strike by the Screen Actors Guild – American Federation of Television and Radio Artists (SAG-AFTRA). The strike, which began on July 14, 2023, and came to an end on November 9, disrupted many film and television productions in Canada during that time. Many companies ramped up their productions in November.

Mining, quarrying and oil and gas extraction increases for second consecutive month

Mining, quarrying and oil and gas extraction grew 0.3% in November as two of three subsectors were up, led by the oil and gas extraction subsector.

Chart 3 
Oil and gas extraction grows in November

Oil and gas extraction (+1.5%) grew solely on the strength of a rebound in oil sands extraction. Oil sands extraction rose 3.8% in November, the largest monthly growth rate since April 2022, as an increase in synthetic oil production along with crude bitumen benefited from a completion of maintenance work at several upgrading facilities in Alberta. Oil and gas extraction (excluding oil sands) contracted 0.7% as lower crude petroleum and natural gas extraction contributed to the decline.

Mining and quarrying (except oil and gas) contracted 1.3% in November in large part due to the metal ore mining industry (-2.2%), which posted its largest decline in a year, as most of its components were down in the month. Copper, nickel, lead, and zinc mining posted a second consecutive decline, down 7.1% in November, as maintenance activity continued to limit production at a copper mine in British Columbia. Lower gold and silver ore mining (-3.1%) further contributed to the decrease, coinciding with lower exports of the metals.

Chart 4 
Main industrial sectors' contribution to the percent change in gross domestic product in November

Advance estimate for real gross domestic product by industry for December 2023 

Advance information indicates that real GDP increased 0.3% in December. Increases in manufacturing, real estate and rental and leasing, and mining, quarrying and oil and gas extraction were partially offset by decreases in transportation and warehousing, construction, and educational services. Owing to its preliminary nature, this estimate will be updated on February 29, 2024, with the release of the official GDP by industry data for December 2023.

With this advance estimate for December, information on real GDP by industry suggests that the economy expanded 0.3% in the fourth quarter and 1.5% in 2023 as a whole. The official estimates for the fourth quarter and the year will be available on February 29, 2024, when the official estimate of real GDP by income and expenditure is released.

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 monitoring the progress of global sustainable development goals. This release will be used to help measure the following goal:

Products

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The Methodological Guide: Canadian System of Macroeconomic Accounts (Catalogue number13-607-X) is also available.

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