Canada GDP August 2015

Real gross domestic product edged up 0.1% in August, following increases of 0.4% in June and 0.3% in July. The growth in August was mainly a result of gains in manufacturing, mining, quarrying, and oil and gas extraction and retail trade.

The output of goods-producing industries grew 0.3% in August, after rising 0.8% in June and 0.7% in July. Manufacturing as well as mining, quarrying, and oil and gas extraction were major contributors to the increase in August. Utilities and the agriculture and forestry sector posted modest gains while construction was unchanged.

The output of service-producing industries edged up 0.1% in August, after growing 0.3% in June and edging up 0.1% in July. There were gains in retail trade, transportation and warehousing services as well as professional services. There were notable declines in wholesale trade and the finance and insurance sector. The public sector (education, health and public administration combined) was unchanged in August.

Manufacturing output grows further

Manufacturing output advanced 0.4% in August, following gains of 0.6% in June and July.

Non-durable goods manufacturing rose 0.6% in August, after edging down 0.1% in July. Growth was notable in chemical manufacturing and, to a lesser extent, in the manufacturing of petroleum and coal products as well as paper. In contrast, declines were posted in manufacturing of plastic and rubber products, beverage and tobacco products as well as printing and related support activities.

Durable-goods manufacturing grew 0.3% in August, after rising 1.1% in July. The manufacturing of wood products, computer and electronic products as well as of primary metals increased in August. In contrast, there were declines in transportation equipment manufacturing and fabricated metal products manufacturing.

After rising 2.6% in June and 3.9% in July, oil and gas extraction increased 0.3% in August, as a result of gains in both conventional and non-conventional oil extraction.

Support activities for mining and oil and gas extraction rose 2.9% in August, following declines in June and July.

Mining, quarrying, and oil and gas extraction continues to expand

Mining and quarrying (excluding oil and gas extraction) edged down 0.1% in August, after rising 3.7% in June and declining 0.5% in July. The declines in coal and copper, nickel, lead and zinc ore mining in August more than offset an increase in potash mining.

Retail trade rises while wholesale trade falls again

Retail trade rose 0.6% in August, after increasing 0.3% in July. Food and beverage stores, motor vehicle and parts dealers as well as furniture and home furnishings stores posted growth in August. Conversely, activities at general merchandise stores and miscellaneous store retailers retreated.

Following a 0.6% decline in July, wholesale trade contracted 0.5% in August, primarily as a result of a decline in machinery, equipment and supplies. The wholesaling of food, beverage and tobacco as well as motor vehicles and parts was also down. In contrast, miscellaneous wholesaling (which includes agricultural supplies) recorded notable growth.

The finance and insurance sector falls

After rising in June and July, the finance and insurance sector fell 0.2% in August. Declines in financial investment services and in banking outweighed the gain in insurance services.

The arts and entertainment sector decreases

The arts and entertainment sector decreased 0.9% in August, following a 6.9% gain in June and a 2.0% decline in July. The increase in June was largely attributable to the FIFA Women’s Soccer World Cup hosted by Canada. Levels in the sector in July and August remained high as a result of high attendance at other sporting events, such as the Pan-American Games.

Construction is unchanged

Construction was unchanged in August. Decreases in non-residential building and repair construction were offset by an increase in residential building construction. Engineering construction was unchanged.

The output of real estate agents and brokers increased 0.2% in August, after two consecutive months of decline.

Other industries

Transportation and warehousing services grew 0.6% in August, mainly as a result of gains in pipeline transportation and trucking services.

After declining for five consecutive months, utilities increased 0.8% in August. Electricity generation, transmission and distribution as well as natural gas distribution were both up.

The public sector (education, health and public administration combined) was unchanged in August. Health care and social services edged up while public administration edged down.

Stats Canada

Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell