Canadian GDP expands 0.2 percent in May, surpassing predictions of 0.1 percent

(MENAFN) On Wednesday, Statistics Canada reported that the country's real gross domestic product (GDP) grew by 0.2 percent in May, marking the fourth increase in the past five months. This growth figure slightly exceeded market expectations of 0.1 percent and followed a 0.3 percent increase in April. The overall growth in May was supported by gains across 15 out of 20 sectors, with the manufacturing sector leading the way with a notable 1 percent increase.

The manufacturing sector's growth in May was the most significant since January 2023, driven by both durable and non-durable goods. Non-durable goods manufacturing saw a substantial expansion of 1.4 percent, the highest growth rate since November 2023. This growth was largely attributed to a 7.3 percent rise in petroleum and coal product manufacturing, marking its largest increase since June 2021. Petroleum refineries, in particular, expanded by 7.9 percent in May, compensating for a 5 percent decline in April due to maintenance activities at many refineries.

Durable goods manufacturing also experienced positive growth, rising by 0.7 percent in May. Within this sector, furniture and related products, along with miscellaneous manufacturing, contributed significantly to the overall increase, with gains of 4.6 percent and 4.7 percent, respectively. However, despite these increases, the mining, quarrying, and oil and gas extraction sector contracted by 0.6 percent in May, partially offsetting a 2.1 percent rise in April. The oil and natural gas extraction subsector particularly saw a contraction of 2.1 percent, ending a streak of three consecutive monthly increases.

Overall, while the manufacturing sector demonstrated robust performance, the contraction in the oil and gas extraction sector highlighted ongoing challenges within specific areas of the Canadian economy.

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