For the fifth consecutive month Canada’s economy expanded, as gross domestic product was 1.6 per cent higher in May than at the same time last year, according to government statistics.
On a monthly basis, the GDP expanded by 0.2 per cent, just shy of expectations for 0.3 per cent. Most sectors of the economy expanded but the service sector led the way, growing by 0.5 per cent. In contrast, the goods-producing industries contracted by 0.3 per cent.
The resource sector was a particular source of weakness, shrinking by 1.7 per cent in May. That’s the second straight month that sector has declined as mining, quarrying, and oil and gas extraction shrank by 1.6 per cent in April.
June figures could change dramatically as a result of recent, severe flooding in the rich, western city of Calgary. And a sudden drop in potash prices, one of Canada’s major exports, could have major consequences in August.
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