According to Statistics Canada, real gross domestic product (GDP) was essentially unchanged in June, following a 0.5 percent gain in May. Increases in 12 of the 20 industrial sectors were tempered by reduced output in non-conventional oil extraction and lower activity in wholesale and retail trade. The output of goods-producing industries contracted 0.2 percent while services-producing industries edged up 0.1 percent as most of the sectors grew.
Following four consecutive months of growth, mining, quarrying and oil and gas extraction declined 0.9 percent in June. Support activities for mining and oil and gas extraction were down 1.4 percent on lower activity by drilling and rigging services along with support activities for mining.
Mining (excluding oil and gas extraction) edged down 0.1 percent in June. Metal ore mining was down 0.6 percent largely due to a decline in iron ore mining. Non-metallic mineral mining was up 1.4 percent on an export-influenced increase in potash mining. Coal mining declined 5.8 percent.
The manufacturing sector was up for the seventh time in nine months, rising 0.3 percent in June. Both non-durable (+0.4 percent) and durable (+0.3 percent) manufacturing increased.
While six of its nine subsectors contracted in June, non-durable manufacturing expanded mainly due to a 17.5 percent gain in petroleum and coal products. A number of major refineries across the country ramped up production following temporary shutdowns for maintenance and retooling in April and May. Chemical manufacturing declined 2.7 percent, mainly on lower activity in pharmaceutical and medicine manufacturing. Food manufacturing contracted 0.7 percent as the output of most of its industries declined.
Durable manufacturing rose for the fourth time in five months in June. Leading the growth were fabricated metal products (+4.1 percent), wood product (+2.3 percent) and electrical equipment (+3.4 percent) manufacturing. Transportation equipment manufacturing (-0.5 percent) was down for the third consecutive month as the decrease in motor vehicle manufacturing more than offset the first increase in motor vehicle parts in four months.
Among industries where the United States implemented tariffs on selected products on June 1, steel product manufacturing from purchased steel (-6.8 percent) declined for the sixth time in seven months, while iron and steel and ferro-alloys (+1.1 percent) and alumina and aluminum products (+1.0 percent) manufacturing increased.
Transportation and warehousing services increased for the fifth consecutive month, rising 0.4 percent in June. Most of the subsectors grew, led by rail and air transportation. Rail transportation rose 2.6 percent on increased rail movement of petroleum, chemicals, metals and minerals. Air transportation was up 1.7 percent as movement of both passengers and goods increased.
The construction sector edged down 0.2 percent in June, following a 1.0 percent gain in May. Residential building construction was down 0.5 percent following a 2.3 percent gain in May on lower construction of most types of structures. Repair construction (-0.3 percent) and engineering and other construction (-0.1 percent) also declined. Meanwhile, non-residential construction edged up 0.2 percent, led by increases in both industrial and commercial construction.