Economy rebounds with 0.5% growth in July

http://autoinsurancereview.tk/wp-content/uploads/2016/09/increase-238x238.jpg

Economy rebounds with 0.5% growth in July

The output of goods-producing industries overall rose 1 per cent in July.

The Canadian Press on September 30, 2016

Canada’s economy advanced 0.5 per cent in July, the second month of recovery from a significant decline in May and a better showing than many economists predicted.

The growth was led by a return to more normal production in the oilsands sector, which was disrupted by wildfires that forced the evacuation of Fort McMurray, Alta.

Statistics Canada said there was a 19 per cent increase in non-conventional oil extraction, which includes oilsands. It was the driving force behind a 3.9 per cent increase in the overall mining, oil and gas extraction sector.

Conventional oil and gas extraction rose at a slower pace (0.6 per cent) while mining declined by 3.1 per cent, mostly because of a diamond mine closure for repairs in the Northwest Territories following a fire in June.

The output of goods-producing industries overall rose 1.0 per cent in July while output from service-producing industries advanced 0.3 per cent.

The Statistics Canada report was stronger than a general estimate from economists, who had forecast growth of 0.3 per cent, according to Thomson Reuters.

The gross domestic product figures indicate that Canada’s economy began the third quarter on solid footing after it experienced a significant contraction in the second quarter.

Manufacturing output rose 0.4 per cent overall, due to a rise in non-durable goods such as petrochemicals. The finance and insurance sectors grew 0.9 per cent. The transportation and warehousing sector rose 1.1 per cent, in part because of travel to events such as the 2016 Summer Olympic Games in Brazil.

However, there were pockets of weakness.

Durable goods manufacturing fell 1.4 per cent — including declines from motor vehicles and parts and aerospace products and parts  – while construction declined for a fourth month in a row, down 0.8 per cent.

Support activities for mining, oil and gas extraction fell for a sixth month in a row, dropping by 6.9 per cent because of less drilling activity.

Source link

Economy rebounds with 0.5% growth in July