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15-001-XIE Gross domestic product by industry October 2006 |
Highlights
Economic activity remained essentially unchanged in October after contracting 0.4% in September. Both the goods-producing sector and the service sector stood still. Unlike their performance the previous month, the energy and utilities sectors experienced strong growth. However, these gains were offset by the losses registered in several sectors, including manufacturing, wholesale trade and retail trade. Production rises in energy and utilities sectorsThe energy sector advanced 0.9% in October. The production, distribution and transportation of natural gas were one of the sector’s main engines of growth. Natural gas inventories remained high, while prices rose in October, following several months of a downward movement. A rebound in electricity production and, to a lesser extent, an increase in refinery output also boosted the sector. On the other hand, oil production declined and oil and gas exploration fell steeply (-8.4%) for a third consecutive month. The output of the mining sector excluding oil and natural gas advanced 4.9%. With the end of a work stoppage on a site in Labrador, the production of base minerals made up for the previous month’s losses. Non-metallic mineral extraction was also up sharply. Automotive production slows manufacturing activity…For a ninth month since the start of the year, the activity of the manufacturing sector was down in October (-0.8%). The manufacturing of non-durable goods rose 0.3%, whereas that of durable goods was down sharply (-1.5%). Of the 21 major groups, 12 decreased, accounting for 71% of total manufacturing value added. Continuing the pattern observed since the start of the year, automakers and manufacturers of related products, such as iron and steel and motor vehicle parts, significantly cut back their production in October. Manufacturers of wood products registered a seventh decrease since January, with some sawmills either cutting back activities or temporarily shutting down facilities. Food products manufacturing also slowed considerably, as did the aerospace industry which dropped back after a strong September gain. Advances in the printing industry and the manufacture of pharmaceuticals and machinery partly offset the losses in other sectors. Industrial production (the output of mines, utilities and factories) remained unchanged in October. The strong increase in utilities and, to a lesser extent, the increase in mining offset the decline in manufacturing. In October, the situation in the United States was similar to that observed in Canada: a stable industrial production and an increase in utilities and mines offsetting losses in the manufacturing sector. The American situation improved in November, as preliminary figures showed a 0.3% increase in the manufacturing sector. …and puts a damper on wholesale tradeWholesale trade declined 0.8% in October. The persistent decline in automotive manufacturing since July has resulted in a substantial slowdown in the activity of wholesalers in this field since August. However, part of these losses was offset by an upturn in sales of household and personal products, pharmaceuticals, and machinery and electronic equipment. Retail trade declined 0.5%, led by a marked decrease in sales of used cars, of home centres and hardware stores, of clothing stores, and general merchandise stores (which include department stores). New motor vehicle sales were almost unchanged after a steep drop the previous month. Construction and real estate sectors post gainsThe construction sector rose 0.2% in October. An increase in engineering and repair work offset declines in residential and non-residential construction. The 0.4% decrease in residential construction was the result of a marked decline in single-family homes, while apartment construction was up. Non-residential building construction fell 0.2%. After five months of consecutive declines, the home resale market momentarily rebounded in October, enabling real estate agents to register a gain of 0.5%. Other industriesThe losses registered in the manufacturing, wholesale trade and retail trade sectors contributed to the decline in the transportation and warehousing sector, especially in trucking (-1.7%) and rail transportation (-3.5%). Industries related to tourism, such as accommodation and air transportation, benefited from an increase in the number of overnight visitors to Canada. |
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