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GDP contracted in May, slight increase for June

Last Updated Jul 30, 2021 at 1:15 pm EDT

THE CANADIAN PRESS/Sean Kilpatrick
Summary

Real gross domestic product (GDP) contracted 0.3 per cent in May


12 of 20 industrial sectors were down as both services-producing and goods-producing industries contract


Preliminary information indicates an approximate 0.7 per cent increase in real GDP for June


OTTAWA — Preliminary information suggests Canada’s real gross domestic product rebounded slightly in June, to 0.7 per cent, according to Statistics Canada.

In May, the GDP contracted to 0.3 per cent, following a 0.5 per cent decline in April.

The decline put total economic activity about two per cent below pre-pandemic levels seen in February 2020.

In May, construction decreased by 2.3 per cent, and repair construction was also slowed.
While oil and gas subsector increased for the third consecutive month, rising 2.6 per cent in May.

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The GDP reflected the restrictions put in place in several provinces to slow the third wave of the COVID-19 pandemic, but by late spring, many of those restrictions were loosened.

The agency says the rebound is due to a growth in retail trade and an upswing in the food services sector due to easing public health measures.

Statistics Canada says with growth in June, total economic activity was about one per cent below pre-pandemic levels.

Real estate and rental leasing contracted by 0.4 per cent in May, making it the first back-to-back decline in the sector since 2020. Home resale activity slowed in almost all Canadian urban centres.

That in turn led to a hit to the legal services sector, which derives much of their activity from real estate transactions, according to Statistics Canada.