Bloomberg News

Canada Jan. Gross Domestic Product Report (Text)

March 30, 2012

The following is the text of the Jan. GDP report released by Statistics Canada.

Real gross domestic product edged up 0.1% in January after increasing 0.5% in December 2011. Gains in manufacturing were partly offset by a decline in oil and gas extraction in January.

Real gross domestic product edges up in January

Increases were also posted in the finance and insurance sector, utilities, wholesale trade, some tourism-related industries and the public sector (education, health and public administration combined). Decreases were recorded in forestry and logging, arts, entertainment and recreation as well as in construction.

Manufacturing output continues to rise

Manufacturing increased for a fifth consecutive month in January, up 0.7%. Durable goods production grew 0.8% mainly because of increased output in fabricated metal products, transportation equipment and wood products. There was a decline in primary metal manufacturing, partly the result of a labour dispute at an aluminum smelter in Quebec. Non-durable goods manufacturing advanced 0.6% on the strength of chemical and food production. Paper and tobacco manufacturing decreased.

Manufacturing output continues to increase

Oil and gas extraction falls

Oil and gas extraction declined 0.9% as a notable decrease in natural gas extraction outweighed the gain in crude petroleum production. Storage of natural gas increased significantly in December and January. Support activities for mining and oil and gas extraction rose 1.8% on the strength of rigging services. Mining excluding oil and gas extraction grew 0.4% mostly as a result of increased output at coal mines.

The finance and insurance sector is up

The finance and insurance sector rose 0.4%, mainly as a result of an increase in management activity for mutual funds, residential mortgages and business loans. The output of insurance carriers was also up.

Wholesale trade increases while retail trade is flat

Wholesale trade increased 0.3% on the strength of the wholesaling of petroleum products, motor vehicles and farm products.

Retail trade was unchanged in January. Gains at motor vehicles and parts dealers as well as general merchandise stores (which include department stores) were offset by declines in building materials stores, food and beverage stores, and electronics and appliances stores. Excluding new car dealers, retail trade declined 0.5%.

Construction and home resale market down

Construction edged down 0.1% as the decline in residential building construction more than offset the gain in non- residential building construction. Most types of residential building construction declined in January. In non-residential building construction, gains in industrial and commercial buildings outweighed a decline in institutional buildings.

Engineering and repair work was unchanged in January as the increase in engineering construction was offset by a decline in repair work.

After four consecutive monthly increases, the output of real estate agents and brokers declined 3.1% in January as activity in the home resale market decreased.

Other industries

The utilities sector was up 1.1% as the demand for electricity increased, following three consecutive monthly declines mostly due to unseasonably warm weather.

Some tourism-related industries, such as accommodation and food services as well as air transportation, grew in January, in parallel with an increase in the number of overnight travellers to Canada.

The public sector (education, health and public administration combined) edged up 0.1%. In contrast, forestry and logging as well as the arts, entertainment and recreation sector declined.

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.

Revisions

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.

To contact the reporter on this story: Ilan Kolet in Ottawa at ikolet@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net


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