Canada’s gross domestic product (GDP) increased 0.3% in May following a 0.1% rise in April, according to Statistics Canada.
At the same time, the federal agency said that preliminary data shows Canada’s GDP decreased 0.2% in June, putting second-quarter economic growth at 0.3%.
In May, 12 of 20 industrial sectors posted increases, driving the gains in monthly GDP.
Gross domestic product, or GDP, measures the value of goods and services produced by a country and is the leading gauge of Canada’s economic health.
In May, manufacturing, wholesale trade, and public administration saw economic gains, while forest fires hampered growth in the energy sector, said StatsCan.
Increased economic output in manufacturing and real estate also helped boost Canada’s growth during the month of May.
Mining, quarrying and oil and gas extraction were the biggest economic detractors in May, as many companies, especially in Alberta, reduced operations due to wildfires.
The energy sector, which was harmed by wildfires during the spring, was down 2.1% in May, marking the sector's first decline in five months and its largest decrease since August 2020.
Easing of supply chain issues with respect to semiconductor chips aided an increases in both the manufacturing and the wholesale sectors during May.
In all, manufacturing across Canada increased its economic output by 1.6% in May, the largest gain since October 2021.Wholesale trade advanced 2.9% in the month as seven of nine subsectors grew.
Motor vehicle wholesalers increased their sales by 6% in May, reflecting increases in imports and exports of automobiles and parts.
Demand for real estate remained strong throughout Canada in May as activity at the offices of real estate agents increased for a fourth consecutive month, logging a 7.6% advance.
However, the construction sector contracted 0.8% in May following a 0.2% increase in April and no change in March. Nearly all subsectors posted declines.
Statistics Canada said its preliminary estimate for June and Q2 GDP will be updated on September 1 of this year.
