Analysis

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Real gross domestic product advanced 0.2% in June, mainly on the strength of manufacturing. Retail trade, utilities and forestry also contributed to the overall growth. Conversely, reductions in mining and oil and gas extraction, and lower activity by real estate agents and brokers partially offset these increases. Wholesale trade remained unchanged.

Manufacturing rose 1.3% in June, continuing its upward trend that started in the third quarter of 2009. Manufacturers of durable goods increased their production 1.9%, notably machinery, fabricated metal and computer and electronic products. Non-durables goods manufacturing advanced 0.5%, led by pharmaceutical products. In contrast, 9 of the 21 major groups declined in June, notably food products.

Retail trade grew 0.7% on significant increases recorded at new car dealers as well as at furniture, home furnishings and electronics stores. Wholesale trade was unchanged in June. Increased activity by wholesalers of automotive products was offset by declines in other major groups such as petroleum products and machinery and equipment.

Mining and oil and gas extraction retreated 0.8%. Oil and gas extraction decreased 0.2% due to lower production of natural gas. Copper, nickel, lead and zinc mines also lowered their output. Production at potash mines contracted but remained at a high level. Support activities for mining and oil and gas extraction were also down.

Sales of existing homes continued to fall in several parts of the country, resulting in a 7.1% decrease in the output of real estate agents and brokers. On the other hand, construction activity was up slightly in June, with residential construction increasing 0.2%.

Forestry and logging increased 10.5% in June, in parallel with a significant increase in exports of lumber products. Conversely, the finance and insurance sector decreased 0.3%, largely as a result of the decline in the volume of transactions on the stock exchanges.

Second quarter 2010

The output of the goods-producing industries rose 1.9% in the second quarter of 2010, while that of the services industries edged up 0.1%. This marks the third consecutive quarter in which the output of the goods-producing industries significantly outpaced that of the services industries.

The second-quarter increase was led by mining, notably oil and gas extraction. Manufacturing also contributed to this gain, as did the banking sector and the public sector (health, education and public administration). Declines in the home resale market, in retail and wholesale trade, in utilities and arts and entertainment contributed to the slower growth.

Mining and oil and gas extraction advanced 4.1%. Oil and gas extraction rose 4.0%, with the production of oil increasing and that of natural gas receding. Mining, excluding oil and gas extraction grew 3.8%. Copper, nickel, lead and zinc mines as well as potash mines contributed the most to the increase. Support activities for mining and oil and gas extraction also increased.

Manufacturing (+1.6%) increased for a fourth consecutive quarter on the strength of durable goods production (+2.4%). The production of primary metals, non-metallic mineral, machinery, fabricated metal products and motor vehicle and parts led the way.

The construction sector posted a fourth consecutive quarterly increase (+0.8%), with residential construction contributing to the growth. Conversely, the home resale market continued to lose momentum, resulting in a 12.6% decrease in the output of real estate agents and brokers.

The finance and insurance sector advanced 0.9% in the second quarter, largely due to an increase in banking activity. Conversely, the utilities sector declined 1.4% as unseasonably warm weather throughout most of Canada lowered the demand for electricity.

Retail trade fell 0.4% in the second quarter, following four consecutive quarterly increases. The most notable declines were in building and outdoor home supplies stores. Wholesaling activity decreased 0.2%.