GDP Eked Up in April

The Canadian economy again found its feet in April, after two straight declines.

Figures released by Statistics Canada showed gross domestic product grew at 0.1% in April.

Economic output improved in the manufacturing and service sectors, but mining and oil and gas extraction continued to fall, hurting the overall outlook for gross domestic product.

The economy shrank by 0.2% in March, after a 0.1% contraction in February. In January, the economy grew by 0.5%.

In April, there was a 2.4% decline in oil and gas extraction compared with the previous month, mainly as a result of maintenance shutdowns at upgrader facilities. That was before the impact that might be felt from the Fort McMurray, Alta., wildfires in May.

There were signs of life in mining, however, with iron ore extraction returning to normal levels and metal ore mining increasing a sharp 7.1%. Commodity prices for metals and minerals rose this spring after correcting sharply over the last two years.

Manufacturing rose by 0.4% for the month and 1.4% in the last year, driven mainly by transportation equipment manufacturing and primary metal manufacturing.

There were also big gains in the service sectors, including transportation and warehousing and finance and insurance.

The impact of the Fort McMurray wildfires may hurt Canada's GDP numbers in May. And the impact of the Brexit vote may affect the economy further down the road.

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