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July 29, 2016
CANADA GDP BY INDUSTRY, MAY 2016

Real GDP in Canada declined 0.6 per cent in May following a 0.1 per cent increase in April.

Output of goods-producing industries declined 2.8 per cent in May, affected by wildfires in Fort McMurray Alberta that month.

The mining, quarrying and oil and gas extraction sector declined 6.4 per cent in May, and the non-conventional oil extraction industry subsector declined 21.6 per cent, following an 8.1 per cent drop in April related to maintenance shutdowns.  GDP for non-conventional oil extraction was its lowest level since May 2011.

Excluding the decline in the non-conventional oil extraction sector, Statistics Canada estimates that real GDP declined 0.1 per cent in May (the difference between this estimate and the overall decline of 0.6 per cent reflecting an approximation of the direct impact of the Fort McMurray wildfire that month).

All other goods-producing industries experienced declines in May.  Agriculture, forestry, fishing and hunting declined 0.1 per cent, utilities declined 1.8 per cent, construction declined 0.7 percent, and manufacturing declined 2.4 per cent, its largest decline since January 2009.

Declines in the non-durable manufacturing sector were affected by lower supply of crude oil at petroleum refineries related to the wildfire in Alberta, as well as maintenance and turnaround work at some facilities. Declines in durable goods manufacturing industries were widespread and included impacts of supply interruptions in the transportation equipment manufacturing industry related to the earthquake in Japan in April.

A 0.3 per cent increase in output in service-producing industries was not enough to offset the decline in goods-producing industries.  The largest monthly increases in service-producing industries were in finance and insurance (+0.6 per cent), wholesale trade (1.0 per cent), public administration (0.9 per cent - boosted by administration of the 2016 census) and arts, entertainment and recreation (4.3 per cent -boosted by higher attendance at sporting events in May following a drop in April when no NHL playoff games took place).

Statistics Canada notes that the Fort McMurray wildfire and evacuation had a minimal impact on most of the service-producing industries at the national level. For further information about the impact of the Fort McMurray wildfire and evacuation on current production measures of GDP see the note in today's version of The Daily.

Comparing Jan-May 2016 and Jan-May 2015, the Canadian economy is 1.3 per cent larger this year than last. Goods production is down 0.9 per cent with declines in construction (-3.9 per cent), utilities (-1.9%), Mining, quarrying and gas extraction (-1.0 per cent) offsetting higher agriculture, forestry, fishing (+3.5 per cent) and manufacturing (+0.8 per cent). Services production is up 2.3 per cent on increases in most subsectors except for a small decline others services.

Note: With this month's release of GDP by industry data, revisions have been made back to January 2015.

Statistics Canada: CANSIM table 379-0031