Analysis

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Real gross domestic product declined 0.1% in September after a 0.3% increase in August. Output of the goods-producing industries decreased 0.7%, due largely to lower extraction of oil and natural gas, and reduced manufacturing activity. Increases at copper, nickel, lead and zinc mines and in utilities helped to offset the weakness in the production of goods. The service sector edged up 0.1%, with increases in the public sector, retail trade and accommodation and food services. Conversely, the finance and insurance sector as well as wholesale trade retreated.

Mining and oil and gas extraction declined 2.0% in September. Oil and gas extraction fell 2.8%, with both natural gas and crude oil decreasing. Support activities for mining and oil and gas extraction declined as well, partly as a result of unfavourable weather. In contrast, output at copper, nickel, lead and zinc mines continued its recent upward trend after the end of labour disputes, returning to its level reached during the second quarter of 2009.

Manufacturing output declined 0.6% in September, with 10 of the 21 major groups contracting. Both durable goods (-0.8%) and non-durable goods (-0.4%) manufacturing were down. In particular, manufacturing of machinery, food products, transportation equipment, wood products and chemicals decreased. The output of primary metal products and printing increased.

The public sector (health, education and public administration combined) rose 0.2% in September. Retail trade grew 0.5% with higher activity recorded at general merchandise stores and at new car dealers. Retailers of building materials and garden equipment and supplies reported a decline, partly mirroring the weakness in residential construction in September.

The finance and insurance sector decreased by 0.7% in September, after a 0.4% increase in August. Weaker financial intermediation (personal and business loans, mortgages, mutual fund sales), lower activity at insurance carriers and a reduced volume of trading on the stock exchanges were contributing factors.

Third quarter 2010

Real gross domestic product increased by 0.3% in the third quarter. The output of the goods-producing industries (+0.8%) significantly outpaced that of the services industries (+0.1%) for a fourth consecutive quarter.

Manufacturing, mining and the public sector were the main sources of growth in the third quarter. Construction and retail trade also contributed to the overall increase. Conversely, decreases were recorded in the output of real estate agents and brokers as well as in wholesale trade and the finance and insurance sector.

Manufacturing (+1.1%) increased for a fifth consecutive quarter, on the strength of durable goods (+2.3%). Manufacturers of machinery, fabricated metals products, computer and electronic products accounted for the largest increases. In contrast, manufacturing of non-durable goods decreased 0.4%.

Mining and oil and gas extraction (+0.8%) rose for a fourth consecutive quarter. The increase was largely attributable to the end of labour disputes at copper, nickel, lead and zinc mines. Oil and gas extraction increased slightly while support activities for mining and oil and gas declined for the first time since the third quarter of 2009.

Construction continued to advance (+0.8%), with all components (residential buildings, non-residential buildings, and engineering and repair work) posting increases. Conversely, the output of real estate agents and brokers decreased (-13.7%) for a third consecutive quarter due to lower activity on the home resale market

The public sector (health, education and public administration combined) rose 0.5%. Retail trade grew 0.3% on the strength of new car dealers and clothing stores.

Declines in the wholesaling of personal and household goods, motor vehicles and parts as well as building materials led to a 0.9% decrease in wholesale trade. The finance and insurance sector declined 0.6%, largely as a result of a lower volume of trading on the stock exchanges.