Monday, March 31, 2008

Gross domestic product by industry

Gross domestic product (GDP) was up 0.6% in January, as the economy bounced back from the 0.7% decline registered in December 2007.

Growth was broadly based, with wholesale trade and manufacturing leading the way. Growth in manufacturing in January was widespread, with almost one-third of the gain attributable to the partial recovery in motor vehicle manufacturing. This partial recovery rippled to other industries, such as rail and truck transportation.

Note to readers The monthly gross domestic product (GDP) by industry data are chained volume estimates with 2002 as their reference year. This means that the estimates for each industry and aggregate are obtained from a chained volume index multiplied by the industry's value added in 2002. For the 1997 to 2004 period, the monthly estimates are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price input-output tables. For the period starting with January 2005, the estimates are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are the industry output and input prices of 2004. This makes the monthly GDP by industry estimates more comparable with the expenditure-based GDP data, chained quarterly. Revisions With this release of monthly GDP by industry, revisions have been made back to January 2007. For more information about monthly GDP by industry, see the National Economic Accounts module on our website (www.statcan.ca/nea).

Increases were also recorded in the financial sector, retail trade, oil and gas extraction and exploration, accommodation and food services, and agriculture. Conversely, utilities, mining excluding oil and gas extraction, and forestry declined.

Nearly half of the December decline in manufacturing is regained

After experiencing a significant 3.4% decline in December and falling to its lowest level since December 2001, manufacturing activity increased 1.7% in January. The 2.6% increase in durable goods manufacturing far outpaced the modest 0.4% increase in non-durable goods. Of the 21 major manufacturing groups, 16 increased, accounting for 71% of total manufacturing value added.

After tumbling 27% in December, motor vehicle manufacturing advanced 12% in January. Production of motor vehicle parts followed a somewhat similar pattern, regaining a portion of its December retreat.

Preliminary information for February 2008 indicates a continuation of the recovery in motor vehicle production, although at a much reduced pace than in January. Additional momentum for the manufacturing sector came from machinery, primary metal, and beverage and tobacco manufacturing. However, chemical product manufacturing slipped.

Wholesaling activities leap forward

After a lacklustre December, wholesaling activities leaped forward 2.8% in January, surpassing its previous peak attained in November 2007. Although the gains were widespread, the primary source of growth was in the activities of miscellaneous wholesaler-distributors. This trade group consists primarily of wholesalers of agricultural chemicals and supplies, non-agricultural chemicals, and recyclable materials.

Significant increases were also recorded in the wholesaling of food products, building materials, machinery and electronic equipment, and motor vehicle parts and accessories. Conversely, alcohol and tobacco wholesaling activities fell.

Energy sector advances

The energy sector advanced 1.1% in January and returned to its October-November level. Petroleum and natural gas extraction moved forward 1.4%. The quantity of natural gas in storage decreased during the month in both Canada and the United States, driven by increased demand from the United States. Furthermore, natural gas distribution declined 1.1% in January. The production of electricity slipped 0.6%.

The output of the mining sector excluding oil and gas plunged 5.4% in January. Metal ore mines were down 2.9%, while non-metallic mineral mines (which include diamonds) tumbled 10.0%. Support activities for mining and oil and gas extraction posted a robust 5.6% gain, returning to their year-ago level. Both contract drilling and rigging were up considerably.

Industrial production (the output of mines, utilities and factories) increased 1.1% in January. The increases in manufacturing and mining were slightly tempered by the decline in utilities. In the United States, industrial production rose 0.1% in January, as utilities increased, while mining fell and manufacturing remained unchanged.

Retail trade activities rise

Value added in the retail trade sector rose 1.2% in January. Significant increases in activities by clothing stores, furniture, home furnishings and electronics stores, convenience and specialty food stores, and new car dealers, propelled the sector. These increases were dampened by a decline in the volume of sales of pharmacies and personal care stores.

Construction up slightly

The construction sector edged up 0.1% in January. Both residential (+0.1%) and non-residential (+0.2%) building construction advanced, while engineering and repair work essentially stood still.

In the non-residential sector, commercial building construction posted a gain, public building construction retreated and industrial construction was flat.

A strong increase in alterations and improvement work, combined with a rise in row house construction, outpaced the declines in the other types of residential construction (such as single homes). The real estate agents and brokers industry remained unchanged for the month, as the overall activity in the resale market for homes was almost flat.

Other industries

Activities in the finance and insurance sector grew 0.3%, on the strength of the record volume of transactions on the stock exchanges. However, mutual funds and most of the standard banking services contracted in January.

Available on CANSIM: table 379-0027.

Definitions, data sources and methods: survey number 1301.

The January 2008 issue of Gross Domestic Product by Industry, Vol. 22, no. 1 (15-001-XWE, free) is now available from the Publications module of our website.

Data on gross domestic product by industry for February will be released on April 30.

For general information or to order data, contact our dissemination agent (613-951-4623; toll-free 1-800-887-4623; IAD-Info-DCI@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Bernard Lefrançois (613-951-3622), Industry Accounts Division.

Monthly gross domestic product by industry at basic prices in chained (2002) dollars
	August 2007r	September 2007r	October 2007r	November 2007r	December 2007r	January 2008p	January 2008	January 2007 to January 2008
	Seasonally adjusted
	month-to-month % change						$ millions¹	% change
All industries	0.2	-0.0	0.3	0.1	-0.7	0.6	1,235,205	2.2
Goods-producing industries	0.2	-0.5	0.2	-0.2	-1.9	0.8	374,355	-0.6
Agriculture, forestry, fishing and hunting	1.3	-0.2	-0.3	-0.4	-0.7	-0.6	26,206	-4.8
Mining and oil and gas extraction	1.5	-1.0	-1.4	-0.3	-1.2	0.7	57,534	-0.3
Utilities	-0.8	1.8	1.2	0.4	-0.6	-0.6	31,418	3.5
Construction	0.3	0.5	0.2	0.2	-0.0	0.1	78,241	2.6
Manufacturing	-0.4	-1.2	1.0	-0.5	-3.4	1.7	180,701	-2.2
Services-producing industries	0.2	0.2	0.4	0.2	-0.1	0.5	862,036	3.6
Wholesale trade	0.1	0.8	1.6	0.1	-2.0	2.8	74,572	8.9
Retail trade	1.2	-0.2	0.4	0.7	0.1	1.2	75,262	6.0
Transportation and warehousing	0.2	-0.2	-0.0	0.2	-1.3	1.0	56,772	2.0
Information and cultural industries	0.2	0.2	0.5	0.1	0.3	-0.2	44,729	2.4
Finance, insurance and real estate	0.1	0.1	0.4	0.3	0.3	0.3	244,660	3.7
Professional, scientific and technical services	0.1	0.1	0.1	0.4	0.0	0.1	58,006	2.8
Administrative and waste management services	0.3	0.3	0.3	0.4	0.3	0.3	32,380	4.1
Education services	0.3	0.4	0.3	0.2	0.2	0.0	58,424	2.7
Health care and social assistance	0.1	0.1	0.2	0.2	0.3	-0.0	77,663	2.5
Arts, entertainment and recreation	-0.5	0.5	-0.4	0.8	-2.0	0.6	11,694	0.1
Accommodation and food services	0.3	0.8	-0.9	-0.6	0.3	0.6	27,892	-0.3
Other services (except public administration)	0.2	0.3	0.5	0.1	0.3	0.2	31,405	3.0
Public administration	0.1	0.1	0.4	0.1	0.2	0.1	68,662	2.4
Other aggregations
Industrial production	0.1	-0.8	0.3	-0.3	-2.5	1.1	270,736	-1.0
Non-durable manufacturing industries	-0.9	-1.6	-0.3	0.4	-1.3	0.4	71,109	-2.2
Durable manufacturing industries	-0.1	-0.9	1.8	-1.0	-4.8	2.6	109,794	-2.2
Business sector industries	0.2	-0.1	0.4	0.1	-0.8	0.7	1,040,145	2.2
Non-business sector industries	0.1	0.2	0.3	0.1	0.2	0.1	194,978	2.3
Information and communication technologies industries	0.0	-0.3	0.9	0.2	-0.1	0.3	57,674	3.9
Energy sector	0.4	-0.2	-0.7	0.1	-1.2	1.1	87,002	1.4
r revised p preliminary 1. Millions of chained (2002) dollars, seasonally adjusted at annual rates.