Real gross domestic product was up for the fifth month in a row in May with an increase of 0.4%, according to Statistics Canada data released July 31.
A jump in service industries output of 0.4% was partly behind the growth, reflecting increases in most industrial sub-sectors. This was most evident in wholesale trade (up 1.2%) and transportation and warehousing (up 1.0%).
“Having taken the pain from temporary factors in April, growth in the Canadian economy was in a position to come in hotter in May,” according to Nick Exarhos, economist at CIBC.
“The economy advanced with an as-expected 0.4% pace on the month, but taking an unrevised April gain of 0.1% into account, that still only leaves growth in Q2 roughly tracking the Bank of Canada’s 2.5% forecast.”
Goods-producing industries saw growth of 0.5%, offsetting a 0.4% hit in April. The biggest driver in May was growth in manufacturing, mining and oil and gas extraction.
Year-over-year, real GDP rose 2.3% in May, with the biggest increase – 3.9% – seen in wholesale trade
