Canadian economy grew 0.3% in May, paving way for 2nd-quarter rebound
The Canadian economy grew by 0.3% in May, exceeding initial estimates and signaling a potential rebound for the second quarter. Growth was driven by gains in industrial sectors like mining, construction, and manufacturing, helping the country recover from a mild contraction earlier in the year.
Why it matters
This data suggests Canada may avoid a prolonged recession, providing critical insight into the health of the North American economy.
The increase topped Statistics Canada's own initial estimate for 0.1 per cent growth in the month.
The agency says 13 of 20 industrial sectors — including construction, manufacturing, finance and insurance and the public sector — contributed to the month's gains.
The mining, quarrying, oil and gas extraction sector rose one per cent in May, leading growth for a second straight month. Some maintenance work that usually happens in the month was completed early or deferred, which paved the way for more extraction.
Transportation and warehousing also increased, as pipelines pushed more natural gas out of the country and onto the market.
Canada's economy reverses months of slow growth with 0.5% boost in April
Offices of real estate agents were also especially busy due to a rise in home-selling activity, boosting the real estate and rental and leasing sector.
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