Canada's Economy Sees Solid Rebound in May with 0.3% Growth
The Canadian economy rebounded in May, showing a growth of 0.3% compared to April's figures. This growth was led by the mining, quarrying, oil and gas extraction sector, which rose 1% in May for the second consecutive month. The oilsands extraction saw an increase as some usual spring maintenance activities were either completed early or deferred.
The transportation and warehousing sector also experienced growth due to strength in pipeline shipments. Offices of real estate agents and brokers saw a significant jump of 5.1% in May, with the spring housing market warming up after a cold snap. The construction, manufacturing, and finance and insurance sectors all grew for a second consecutive month.
The public sector also expanded in May. Statistics Canada revised April's GDP figures to 0.6%, higher than initially estimated. Their flash estimate predicts a gain of 0.2% in June due to expected gains in wholesale, retail trade, and finance and insurance.
Based on this data, StatCan's advance estimate suggests real GDP will rise 3.4% on an annualized basis in the second quarter. This would be a significant rebound from the mild contraction seen in the first three months of the year, topping the Bank of Canada's forecasts for growth of 2.5% in the second quarter.