Company News

UPDATE 1-Canada posts 0.2% gain in May GDP as manufacturing rebounds

OTTAWA, July 31 - Canada’s economy grew by 0.2% in May, the third increase in as many months, thanks to a rebound in manufacturing, Statistics Canada data showed on Wednesday.

Analysts in a Reuters poll had predicted an increase of 0.1% in May following a larger-than-expected increase of 0.3% in April. Overall, 13 of the 20 industrial sectors monitored expanded in May, the national statistical agency said.

Durable manufacturing rose by 2.3%, more than offsetting the 1.7% drop seen in April. Meanwhile, the transportation equipment manufacturing subsector saw a growth of 5.7% after motor vehicle production returned to normal levels some temporary plant shutdowns in April.

Canada’s construction industry also saw gains in May, rising 0.9% and recording its fourth jump in five months. Residential construction posted its strongest growth in more than a year, rising by 2.2% as construction of double, row and other multi-unit dwelling expanded. However, contractions were felt within the mining, quarrying and oil and gas extraction industries, dropping by of 0.8% following a gain of 5.5% in April, thanks in large part to a decline in extractions from the oil sands.

Reporting by Kelsey Johnson; Editing by Dale Smith and Nick Zieminski