After rising for eight consecutive months, real gross domestic product (GDP) was essentially unchanged in July as 11 of 20 industrial sectors grew.
Goods-producing industries contracted 0.5%, the first decrease in five months, largely as a result of declines in mining, quarrying and oil and gas extraction and in manufacturing. Services-producing industries increased 0.2%.
The mining, quarrying, and oil and gas extraction sector contracts
The mining, quarrying, and oil and gas extraction sector contracted 1.2% in July, mainly due to a 1.8% decline in the oil and gas extraction subsector.
Non-conventional oil extraction was down for the fourth time in five months, decreasing 3.0%. Conventional oil and gas extraction decreased for the first time in five months, declining 0.8% as a result of lower crude petroleum extraction.
Mining, excluding oil and gas extraction, rose 0.9%. Metal ore mining rose 3.4%, led by strength in copper, nickel, lead and zinc mining (+4.5%) and iron ore mining (+7.1%), while gold and silver ore mining decreased 2.2%. Coal mining was up 1.0%. Non-metallic mineral mining declined 2.7% as lower output from potash mines (-12.6%) more than offset an increase in other non-metallic mineral mining.
Support activities for mining, oil and gas extraction declined 1.2%, down for the third consecutive month, due to declines in support activities for oil and gas extraction on lower drilling services.
Wholesale trade grows
Wholesale trade activity rose 2.0% in July, the highest monthly gain since September 2014. Growth was broadly based across the sector as seven of nine sub-sectors were up. Leading the growth was a 5.3% increase in building material and supplies wholesaling. Machinery, equipment and supply wholesalers recorded a 2.3% increase on the strength of increased activity across most industry groups. Motor vehicle and parts wholesaling rose 1.9% on the strength of stronger sales of motor vehicles.
The manufacturing sector declines
The manufacturing sector was down 0.4% in July. This sector has generally been posting increased activity since the second half of 2016.
Durable manufacturing declined 0.9%, following four consecutive months of growth. The largest contributor to the decline was a 5.6% decrease in the transportation equipment manufacturing subsector. Motor vehicle manufacturing was down 13.5%, in part as a result of changes in vehicle models being produced in Canada. Motor vehicle parts manufacturing was down 7.1%, while miscellaneous transportation equipment decreased 1.0%. In other durable manufacturing sub-sectors, machinery manufacturing dropped 3.6% while non-metallic mineral product and miscellaneous manufacturing increased.
Non-durable manufacturing was up 0.3% in July after being essentially unchanged in June. Increases in plastic and rubber products (+2.0%) and chemical products manufacturing (+1.3%) more than offset declines in food (-0.7%) and petroleum and coal products manufacturing (-0.7%).
Finance and insurance declines
The finance and insurance sector declined 0.6% in July, its largest decline since April 2015. Depository credit intermediation and monetary authorities declined 1.0% on decreased activity at banking, monetary authorities and other depository credit intermediaries. Financial investment services, funds and other financial vehicles were down 0.8%, with the timing of Canada Day and of the United States’ Independence Day having an effect on the level of market activity. Insurance carriers and related activities rose 0.3%.
Construction declines
The construction sector declined 0.5% in July, after posting one of its largest gains in the last four years in June following work stoppages in Quebec in May. Residential construction was down 0.9% as new construction of double and row houses declined, along with housing alterations and improvements. Non-residential construction grew 0.6% as industrial and commercial constructions were up, while public construction edged down. Repair construction was down 1.3%, while engineering and other construction was essentially unchanged.
Transportation and warehousing edges down
Transportation and warehousing edged down 0.1% with five of nine sub-sectors showing decreases. Pipeline transportation was down 1.9%, partly due to wildfires in British Columbia forcing the temporary closure of some pipelines, as movement of natural gas (-3.2%) and crude oil (-0.7%) by pipeline declined. Rail transportation was down 1.2% as movement by rail of coal, automotive products, grains and fertilizers and industrial products declined. Support activities for transportation was down 0.8%. Partly offsetting the declines was growth in air transportation (+2.2%), warehousing and storage (+1.4%) and transit, ground passenger, scenic and sightseeing transportation (+0.6%).
Retail trade edges down
The retail trade sector edged down 0.1% as its 12 sub-sectors were evenly split between increases and decreases. The largest declines in terms of activity were at gasoline stations (-3.0%) and electronics and appliance stores (-4.9%). These were partly offset by growth at food and beverage stores (+0.8%) and health and personal care stores (+0.4%).
The utilities sector grows
The utilities sector was up 1.7% in July. Higher demand for electricity in Western Canada, in order to cope with a hot and dry July, led to a 2.3% gain in electric power generation, transmission and distribution. Natural gas distribution was down 0.9% from lower residential demand.
Real estate and rental and leasing grows
Real estate and rental and leasing edged up 0.1% in July following two consecutive months of decline.
For the fourth month in a row, activity at the offices of real estate agents and brokers contracted, down 1.5%. Housing resale activity decreased in most markets, led by continued declines in and around the Greater Toronto Area.
Other industries
The public sector (education, health care and public administration) rose 0.2% as all three components increased.
Professional services rose 0.5% on the strength of increases in legal, accounting and related services (+1.2%), computer systems and related services (+0.5%) and architectural, engineering and related services (+0.6%).
Accommodation and food services rose 0.4% as activity at food services and drinking places was up 0.5%, while accommodation services increased 0.3%.
Agriculture, forestry, fishing and hunting was down for the ninth time in ten months.
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