Canada May GDP 0.3% versus 0.2% expected

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  • Prior 0.6% (was 0.5%)
  • Real GDP: +0.3% m/m vs 0.2% estimate and marking the second consecutive monthly increase.
  • Broad-based growth: 13 of 20 industrial sectors posted gains during the month.
  • Goods-producing industries: +0.6%, with most sectors contributing to the increase.
  • Services-producing industries: +0.2%, led primarily by gains in:

    • Real estate and rental & leasing
    • Public administration

For June: 

  • Advance information indicates that real GDP increased 0.2% in June. Increases in wholesale, finance and insurance, and retail trade were partially offset by decreases in utilities and agriculture, forestry, fishing and hunting. Owing to its preliminary nature, this estimate will be updated on August 28, 2026, with the release of the official GDP by industry data for June.

Details:

  • Mining, quarrying, oil & gas extraction: +1.0%

    • Two of the three subsectors expanded for the second consecutive month.
  • Public sector: +0.3%

    • Gains were seen across education, health care & social assistance, and public administration.
  • Construction: +0.8%

    • All subsectors moved higher.
    • Engineering & other construction: +1.1%.
    • Residential building construction: +1.1%, led by apartment building construction.
  • Real estate & rental and leasing: +0.4%

    • Broad-based gains across all subsectors.
    • Offices of real estate agents, brokers & related activities: +5.1%, the second consecutive monthly increase.
    • Largest monthly gain since October 2024, reflecting stronger home resale activity, particularly in Ontario and British Columbia.
  • Manufacturing: +0.3%

    • Most manufacturing subsectors posted gains.
  • Non-durable goods manufacturing: +1.0%

    • Fourth consecutive monthly increase.
    • Chemical manufacturing: +5.9% after three straight monthly declines.
    • Pharmaceutical & medicine manufacturing: +9.4%, supported by stronger exports.
  • Durable goods manufacturing: -0.2%

    • Declines led by:

      • Machinery: -2.2%
      • Miscellaneous manufacturing: -7.5%
      • Electrical equipment, appliances & components: -4.0%
    • Partly offset by gains in:

      • Fabricated metal products: +2.5%
      • Motor vehicle manufacturing: +4.7%

    This article was written by Greg Michalowski at investinglive.com.

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