Analysis

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Real gross domestic product edged up 0.1% in May, after increasing 0.3% in April. The output of service industries rose 0.1% in May on the strength of retail trade and the finance and insurance sector. Accommodation and food services and wholesale trade were also up. Transportation services and the arts and entertainment sector declined, however. Goods production was unchanged in May as the increase in mining and oil and gas extraction was offset by declines in manufacturing and, to a lesser extent, construction.

Retail trade increases and wholesale trade edges up

Retail trade rose 0.7% in May after declining 0.9% in April. Increases were recorded at food and beverage stores, clothing and clothing accessories stores as well as gasoline stations. In contrast, retailing activity at motor vehicle and parts dealers as well as health and personal care stores decreased.

Wholesale trade edged up 0.1% in May, up for the sixth consecutive month. Wholesaling of machinery and equipment, food, beverage and tobacco products as well as motor vehicles and parts increased. Conversely, wholesaling of personal and household goods and farm products declined.

Finance and insurance sector activity increases

The finance and insurance sector rose 0.5%, with increases in the volume of trading on the stock exchanges and in personal lending. The output of insurance carriers was also up.

Mining and oil and gas extraction up again in May

Mining and oil and gas extraction increased 0.6% in May after rising 2.0% in April. Oil and gas extraction advanced 1.5% in May as crude petroleum production continued to rise after maintenance and production difficulties in February and March. Natural gas production was also up in May, and storage levels of natural gas declined for the second consecutive month. However, support activities for mining and oil and gas extraction fell 8.7% as drilling and rigging services decreased.

Mining excluding oil and gas extraction grew 1.0% in May as increased output at potash mines offset declines in metal ore and coal mining.

Manufacturing declines

Manufacturing declined 0.5% in May. Durable goods production contracted 0.6% mainly due to lower manufacturing of machinery, computer and electronics products and primary metal. Manufacturing of non-durable goods also fell (-0.3%) as declines in food products and refineries more than offset increases in the production of clothing and paper products.

Construction down

Construction fell 0.2% in May as decreases in residential building and, to a lesser extent, non-residential building construction outweighed the increase in engineering construction and repair work.

The output of real estate agents and brokers declined 4.8%, after increasing for three consecutive months, as activity in the home resale market decreased in May.

Other industries

Transportation and warehousing services fell 0.5% mainly as a result of a decline in rail services which were impacted by a strike in late May. The arts, entertainment and recreation sector also decreased while accommodation and food services were up.