Canada’s GDP fell by -0.1 per cent in November, versus expectations that it would grow by 0.2 per cent.
That follows a month of 0 per cent growth.
This drop in GDP was led primarily by declines in oil and natural gas extraction, but the data appeared negative across the board with drops in wholesale trade, the financial sector, and construction.
Read the full press release is below:
Real gross domestic product edged down 0.1% in November, following no growth in October and monthly increases from June to September. Most of the November decline was accounted for by lower output in the energy sector. Decreases were also recorded in wholesale trade, finance and insurance, and construction. Gains were posted in manufacturing, retail trade, accommodation and food services, professional services and real estate agents and brokers.
Real gross domestic product decreases in November
Oil and gas extraction falls
Oil and gas extraction declined 2.5% in November. The decrease in output of crude petroleum, partially a result of maintenance shutdowns, led the decline. Lower extraction of natural gas was also recorded. Exports of crude petroleum and natural gas were down. Support activities for oil and gas extraction fell 3.8%, particularly because of decreases in drilling activity. However, mining excluding oil and gas extraction grew 0.3% as a result of increased overall production at copper, nickel, lead and zinc mines.
Note to readers
The monthly gross domestic product (GDP) by industry data at basic prices are chained volume estimates with 2002 as the reference year. This means that the data for each industry and each aggregate are obtained from a chained volume index multiplied by the industry’s value added in 2002. For the 1997 to 2008 period, the monthly data are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price input-output tables.
For the period starting with January 2009, the data are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are 2008 industry prices.
This approach makes the monthly GDP by industry data more comparable with the expenditure-based GDP data, chained quarterly.
With this release of monthly GDP by industry, revisions have been made back to January 2011. For more information about monthly GDP by industry, see the National economic accounts module on our website.
Oil and gas extraction falls
Manufacturing output continues to rise
Manufacturing increased (+0.6%) for the third consecutive month. Growth was mainly based in the production of durable goods (+0.9%) as opposed to non-durable goods (+0.1%). Manufacturers of machinery and of transportation equipment (primarily motor vehicles) benefitted from an increase in foreign demand during the month. Gains were also posted in fabricated metal products, furniture and related products, and primary metal products. Manufacturing of computer and electronic products was down, as was wood products.
Wholesale trade declines while retail trade continues to grow
Wholesale trade retreated 0.6%, mainly because of lower wholesaling of miscellaneous products (which include agricultural supplies). Conversely, retail trade grew 0.6%, a fourth consecutive monthly increase. The November growth was largely the result of increased activity at motor vehicle and parts dealers and at clothing stores.
Construction down, home resale market up
Construction was down 0.3% as both residential and non-residential building construction decreased. Engineering and repair work was unchanged in November. In the residential sector, construction of single-family dwellings continued to decline. In non-residential building construction, the decrease in institutional and commercial buildings outweighed the increase in industrial buildings.
Activity in the home resale market increased in November, particularly in Eastern Canada, resulting in a 2.2% rise in the output of real estate agents and brokers.
The finance and insurance sector declines
The finance and insurance sector decreased 0.4%, mainly as a result of lower volume of trading on the stock exchanges. Sales of mutual funds were down slightly. The output of insurance carriers was unchanged.
The utilities sector was down 0.6%, as unseasonably warm weather contributed to lower demand for electricity.
Some tourism-related industries, such as air transportation and accommodation and food services, grew in November.
Main industrial sectors’ contribution to the per cent change in gross domestic product, November 2011
Available on CANSIM: table 379-0027.
Definitions, data sources and methods: survey number 1301.
The November 2011 issue of Gross Domestic Product by Industry, Vol. 25, no. 11 (15-001-X, free), is now available from the Key resource module of our website underPublications.
Data on gross domestic product by industry for December will be released on March 2.
For more information, or to order data, contact the dissemination officer (toll-free 1-800-887-4623; 613-951-4623; [email protected]). To enquire about the concepts, methods or data quality of this release, contact Allan Tomas (613-951-9277), Industry Accounts Division.
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