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Thomas StorringDirector – Economics and Statistics
Tel: 902-424-2410Email: thomas.storring@novascotia.ca

November 30, 2021
CANADA GDP BY INDUSTRY, SEPTEMBER 2021

With September reference month results, year-over-year (September 2021 vs September 2020) and year-to-date (Jan-Sep 21 vs Jan-Sep 20) are showing the rebounds in economic activity from the unprecedented declines observed at the start of the COVID-19 pandemic.

Real Gross Domestic Product (GDP) in Canada increased 0.1% in September 2021, following a 0.6% increase in August 2021. For the month, activity was up in 12 of 20 industrial sectors, led by gains in services producing industries and mining, quarrying and oil and gas extraction. Good-producing industries (-0.6%) had a decline in the month.

The Canadian economy was 1.4% smaller when compared to pre-pandemic February 2020 with an annualized value of $1,982 billion (chained 2012 dollars) in September 2021.

Statistics Canada’s preliminary estimate for real GDP points to 0.8% increase in October 2021. Widespread increases in manufacturing, public sector, construction, finance and insurance, and transportation and warehousing led the growth. The official GDP data for October 2021 will be published on December 23, 2021.

 

Goods-Producing Industries

Goods-producing sector output declined 0.6% month-over-month in September 2021 with a third significantly monthly decline in agriculture, forestry, fishing and hunting as drought conditions continued. Crop production (except cannabis) was down 3.1% on poor harvest quality and quantity. Animal production and aquaculture was down with increased animal culling as drought condition lessened animal feed.

Manufacturing declined 1.7% in September, a fifth decline in eight months. Durable goods declined 2.5% with declines in transportation equipment (-9.1%). Motor Vehicle (-30.8%) and motor vehicle parts (-13.1%) manufacturing declined due to global semiconductor shortage and other supply chain disruptions. Non-durable goods declined (-0.9%) with declines in plastic and rubber and petroleum and coal products manufacturing.

Mining and quarrying was down 1.5% on lower non-metallic mineral mining and coal mining. Oil and gas extraction was up 2.4% with higher oil sands extraction. Support activities expanded 1.7% with higher mining support activities.

Construction activity declined 0.7% with lower residential construction (-1.9%) offset by growth in non-residential building construction. 

Services-Producing Industries

Output of the services-producing sector increased 0.4% in September 2021, following a 0.8% increase in August.

Arts, entertainment and recreation sector was up 5.6% with increases in all forms of activities. Attendance limits at indoor gatherings and spectator events continued to decrease.

Professional, scientific and technical services sector was up 1.2% with increases in computer systems design and related services (+1.2%), architectural, engineering and related services, legal services and other professional, scientific and technical services.

Finance and insurance had a 0.3% gain in September. Credit intermediation and monetary authorities (+0.6%) activity increased as interest earned on loans and mortgages at charted banks continued to grow. Activity in financial investment services, funds and other financial vehicles, insurance carriers and related activities declined.

The public sector grew 0.6% with increases in public administration (+1.2%), educational services (+0.6%) and health care and social assistance (+0.2%). Public administration was up on higher federal government departments and agencies services with the federal elections held on September 20.

Accommodation and food services sectors decreased 1.4% in September, following gains in the previous three months. Food services and drinking place was down 3.2%. Accommodation services gained 4.1% in September with rising international travellers as fully vaccinated non-residents were eligible for entry to Canada for tourism as of September 7.

Retail trade decreased 0.9% with 9 of 12 subsectors posting declines. Clothing stores posted the largest declines, and motor vehicles and parts declined amid global supply chain constraints.

 

 

September 2021 vs February 2020

Canadian real GDP was 1.4% lower when compared to February 2020.

Amid the COVID-19 pandemic and recovery to date, the service sectors with the current largest declines in activity are in management of companies and enterprises (-38.4%), arts, entertainment and recreation (-32.2%), transportation and warehousing (-15.8%) and accommodation and food services (-11.9%). For September 2021, all goods-producing industries were at lower levels of activity than February 2020 except mining, quarrying, and oil and gas extraction. Activity has increased in some private service sectors compared to February 2020: finance and insurance (+6.0%), retail trade (+2.8%), professional, scientific and technical services (+2.6%), and real estate and rental and leasing (+2.5%). Public sector GDP has increased from February 2020.

Year-Over-Year (September 2021 vs September 2020)

Canadian real GDP was 3.4% higher than in September 2020. The largest increases, in percentage terms, have been in arts, entertainment and recreation, accommodation and food services, mining, quarrying and oil and gas extraction, other services (personal, repair), and health care and social assistance. Agriculture, forestry, and fishing, manufacturing, and management of companies and wholesale trade had lower GDP in September 2021 than September 2020.

Year-to-Date (Jan-Sep 2021 vs Jan-Sep 2020)

The Canadian economy in the first nine months of 2021 increased 5.2% compared to the same period in 2020.

Compared to the same period last year, the largest increases in activity have been in health care and social assistance (+10.3%), retail trade (+9.8%), and other services (+7.7%). Activity decreased the most in management of companies (-22.1%) and arts, entertainment and recreation (-8.7%).

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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