According to Statistics Canada, the economy stagnated in April following a 0.3% increase in March. Both goods-producing and services sectors remained unchanged in April.
Significant increases were recorded in mining of metal ore and coal. Mining rose 1% in April, primarily on the strength of copper, nickel, lead and zinc.
Increases were also seen in retail trade, the public sector, construction and utilities. However, this growth was offset by declines in the manufacturing industry, which decreased 0.7%, with most of the decline concentrated in the production of durable goods.
The 6.9% decrease in motor vehicles and parts production was mostly due to supply disruptions as a consequence of the tsunami in Japan. This decrease, combined with lower production of aerospace products, led to a 4.7% reduction in manufacturing of transportation equipment.
Declines were felt to a lesser extent in wholesale trade and the finance, insurance and real estate sectors. The finance and insurance sector fell 0.4% as a result of declines in the volume of personal and business loans and deposits at financial institutions, as well as in the volume of trading on the stock exchanges.
Activity at insurance carriers fell 0.5%. Transportation services were unchanged.
Jennifer Harrison
Twitter: JHarrisonBIV