Friday 29 July 2011

Economy shrank in May after stagnant April: StatsCan

OTTAWA - The economy shrank by 0.3 per cent in May, the second consecutive monthly decline, with slumps in mining, and oil and gas production leading the downturn, according to a report by Statistics Canada.

The agency says the shrinkage comes on the heels of a stagnant April. The last rise in the real gross domestic product was the 0.3 per cent increase recorded in March.
Mining, oil and gas extraction, manufacturing and construction all fell in May.
There was growth in the wholesale and retail trade, the public sector and utilities as well as the finance and insurance sector.
Mining and oil and gas fell 5.3 per cent in May after two consecutive monthly increases.
Wildfires in northern Alberta and bad weather, as well as maintenance shutdowns, reduced oil and gas by 4.2 per cent.
Manufacturing fell by 0.4 per cent, with production of non-durable goods off 1.4 per cent. Production of durable goods increased 0.4 per cent.
Refinery output was down significantly, as maintenance shut a number of plants.
Production of motor vehicles and parts fell 0.5 per cent in May, after a larger slump in April, which was blamed on the after-effects of the Japanese tsunami.
However, production of computer and electronic products, chemicals and machinery rose.
Construction slipped 0.3 per cent as declines in engineering, repair work and non-residential construction outweighed an increase in home building.
Wholesale trade advanced 1.0 per cent, with growth in machinery and equipment as well as agricultural supplies. Wholesaling of petroleum products and motor vehicles was down.
Retail trade grew by 0.2 per cent with higher sales at building material and garden equipment stores and general merchandise stores.
Work on the 2011 census helped drive public-sector growth, the statistics agency said.
By The Canadian Press

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