Economy stays level thanks to retail-wholesale trade and transportation

OTTAWA — Sustained mainly by growth in retail and wholesale trade, transportation and warehousing, the Canadian economy advanced slightly by 0.1 percent in April, matching the pace of the previous month.

However, in contrast, declines in utilities, construction, manufacturing, as well as in mining, oil and gas exploration resulted in a 0.3 percent drop in the goods-producing industries, reports Stats Canada.

The 1.2 percent growth activity in the retail trade sector was driven largely by higher used vehicle sales and a rebound among food and beverage retailers. The largest declines were recorded by building materials stores, and by furniture, home furnishings and electronics stores.

Despite a dip in home furnishing and electronics, retail
trade helped keep economy at pace

Building on its gains in the previous four months, wholesale trade climbed 0.6 percent in April, reports Stats Can. Growth was especially strong among wholesalers of motor vehicles, computers and electronic equipment, and home and personal products.

Rebound in Motor Vehicles Can’t Stop Manufacturing Decline:

Manufacturing output decreased 0.3 percent in April in response to a weakening in both non-durable and durable goods. Of the 21 major groups, 10 declined, representing 46 percent of total manufacturing output.

However, a rebound in motor vehicle production (+2.9%) and in aerospace products (+2.9%) helped limit losses in durable goods manufacturing.

Energy Sector Slips:

After a sharp jump in March, oil and gas exploration receded 9.7 percent in April, spurring a 0.8 percent decline in the energy sector, says Stats Can.

Beyond the activities related to energy resources, mining extraction (+3.2%) partially regained the losses recorded in previous months. After four months of decreases and despite high inventory levels, the imminence of supply contract renewals spurred potash producers to increase their activity substantially (+19%).

Construction Loses Ground:

After almost two years of uninterrupted growth, construction recorded its second straight loss in April (-0.5%). Following a net decline in March, residential construction fell again in April (-0.8%), according to Stats Can.

Housing demand slowed in many urban areas. Non-residential construction fell 0.5 percent, owing to a decline in work on industrial buildings, while construction of commercial and institutional buildings advanced.