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August 28, 2020CANADA GDP BY INDUSTRY, JUNE 2020 Real Gross Domestic Product (GDP) in Canada increased 6.5 per cent month over month in June 2020, following a 4.8 per cent increase in May, the largest monthly increase since the series started in 1961.
The social distancing measures put in place to limit the spread of COVID-19 resulted in widespread shutdowns and large declines in economic activity over March and April 2020. With provinces and territories started to reopen their economies, economic activity picked up in May and June. While May and June’s gains offset some of the declines seen in the previous two months, total economic activity was still 8.7 per cent below the pre-COVID level seen in February 2020.
Compared to June 2019, the Canadian economy declined 7.8 per cent with an annualized value of $1,821 billion (chained 2012 dollars) in June 2020.
Goods-Producing Industries
Output for goods-producing sector increased 7.5 per cent with all subsectors registering monthly gains except mining.
Construction sector grew 9.4 per cent in June following a 17.3 per cent increase in May, with an increase in all types of construction activity.
The manufacturing sector output increased 14.6 per cent in June 2020 following an increase of 8.1 per cent in May, supported by gains in both durable and non-durable manufacturing sectors. Durable manufacturing increased 22.0 per cent, a second consecutive monthly gain mainly due to a 57.0 per cent growth in the transportation equipment manufacturing subsector. The output of motor vehicles and motor vehicle parts continued to scale up production and aerospace and miscellaneous transportation manufacturing increased. Machinery manufacturing grew 39.4 per cent with most industries had double digit growth.
Non-durable manufacturing rose 7.5 per cent, led by the growth in Plastic and rubber products (+29.7%) in June 2020. Chemical (+7.4%) and food manufacturing (+5.8%) were up in June while clothing and leather (-21.7%) and paper manufacturing (-0.8%) were down.
Mining, quarrying, and oil and gas extraction declined 4.7 per cent in June, mainly due to 58.0 per cent decline in support activities for mining, and oil and gas extraction resulting from lower drilling and rigging services.
Services-Producing Industries
Output of services-producing sector increased 6.1 per cent in June 2020.
Accommodation and food services output increased 28.5 per cent in June. Activity at food services and drinking places increased 27.2 per cent as dining-in options became more available with continued easing of restriction. “Traveller accommodations, recreational vehicle parks and recreational camps grew by one-third (+33.1%), in part as some Canadians opted for a closer-to-home vacation, with varying sets of rules for interprovincial travel across the country and continued international travel restrictions in place. However, output was 58% below the pre-pandemic level.” (Statistics Canada)
Retail trade increased 22.3 per cent in June, reached a pre-pandemic level of activity. Activity was up in 11 of the 12 subsectors with motor vehicle and parts dealers (+57.4%) contributing the most to the growth. As shopping malls and stores began to reopen, activity bounced back in clothing and clothing accessories (+139.2%), furniture and home furnishings stores (+67.4%) and sporting hoods, hobby, book and music stores (+64.3%). Only non-store retailers (-3.5%) were down in June, following three months of strong expansion.
Wholesale trade increased 15.8 per cent in June, the largest monthly increase since the series began in 1961. Activity was up in all 9 subsectors, led by motor vehicle and motor vehicle parts and accessories wholesaling (+62.6%), personal and household goods (+18.7%) and machinery, equipment and supplies (+10.2%). Building materials and supplies wholesaling also increased, as construction activity across the country continued to grow.
Transportation and warehousing sector increased 8.0 per cent in June. Activity was up in 9 of 10 subsectors, the largest contributions came from truck transportation (+12.3%) and transportation support activities (+14.4%) while rail transportation declined 2.5 per cent.
The professional, scientific and technical services sector was up 2.9 per cent in June, as all industries increased.
Health and social services activity increased 7.0. per cent in June, led by a 19.1 per cent growth in ambulatory health care amid reopening. Educational services increased 0.9 per cent. Public administration activity was up 2.1 per cent in June.
Arts, entertainment and recreation output was up 7.2 per cent in June due to an increase in amusement and recreation activities.
Source: Statistics Canada, Table 36-10-0434-01 Gross domestic product (GDP) at basic prices, by industry, monthly (x 1,000,000)
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