Analysis

View the most recent version.

Real gross domestic product rose 0.4% in September, after levelling off between June and August. Most major industrial sectors increased their production in September. Goods-producing industries advanced 0.9%, the first increase since July 2008, bolstered by mining and manufacturing. The services-producing industries continued to grow (+0.3%), on the strength of retail trade in particular. Conversely, accommodation and food services, utilities as well as agriculture retreated.

The output of the mining sector excluding oil and gas extraction grew 5.6% mainly due to the reopening of some mines after shutdowns in July and August. Both non-metallic mineral mines (which includes diamonds) and iron ore mines increased their production substantially. Oil and gas extraction advanced 0.9% due to an increase in petroleum extraction while natural gas facilities lowered their production.

The 1.1% increase in manufacturing output was widespread, with 15 of the 21 major groups advancing. Notable increases were recorded in the manufacturing of primary metals, beverage and tobacco products, plastics and rubber products as well as transportation equipment.

Value added in the retail trade sector rose 1.1% in September, with gains in most of the trade groups. Automotive products as well as food and beverage stores reported appreciable increases. The volume of activity in wholesaling advanced 0.4% in September reflecting the strength in exports and manufacturing as well as the increased demand from retailers.

Construction activity was up 0.2% in September. Residential building construction and engineering and repair works rose, while non-residential building construction retreated. Increased activity in the home resale market translated into a 2.8% advance in the output of real estate agents and brokers.

The accommodation and food services sector retreated despite an increase in the number of international travellers coming to Canada. The decline in agriculture was largely attributable to weak crop production. Utilities were down due to weaker demand for both electricity and natural gas.

Third quarter 2009

Real gross domestic product increased 0.1% in the third quarter following three consecutive quarterly declines. Service-producing industries increased 0.6% with output in the wholesale and retail trade sectors and real estate agents and brokers leading the way. Goods-producing industries (-1.4%) continued their downward trend that started in the third quarter of 2007 with the mining and oil and gas extraction sector being the hardest hit due to temporary shutdowns.

Value added in wholesale and retail trade increased 2.0% and 1.3% respectively on the strength of automotive products.

Sales of existing dwellings continued to show upward momentum in the third quarter, resulting in an 11% increase in the output of real estate agents and brokers.

Output of the mining sector excluding oil and gas extraction decreased 12.5% mostly because of temporary shutdowns due to lower demand and labour disputes. Oil and gas extraction as well as support activities decreased during the quarter.

The construction sector posted its fourth consecutive quarterly decline (-0.4%). Both residential and non-residential building construction declined while engineering and repair works remained unchanged.

The pace of the decline in the manufacturing sector was significantly reduced (-0.2%) compared to the previous three quarters. The production of non-durable goods remained unchanged, while that of durable goods decreased 0.5%. Manufacturers of machinery, primary metal, and fabricated metal products all curtailed their output. Conversely, manufacturing of motor vehicle (+16%) and motor vehicle parts (+12%) increased significantly.