Canada Nov. Gross Domestic Product Report (Text)

The following is the text of the Nov. GDP report released by Statistics Canada.

Real gross domestic product edged down 0.1% in November, following no growth in October and monthly increases from June to September. Most of the November decline was accounted for by lower output in the energy sector. Decreases were also recorded in wholesale trade, finance and insurance, and construction. Gains were posted in manufacturing, retail trade, accommodation and food services, professional services and real estate agents and brokers.

Real gross domestic product decreases in November

Oil and gas extraction falls

Oil and gas extraction declined 2.5% in November. The decrease in output of crude petroleum, partially a result of maintenance shutdowns, led the decline. Lower extraction of natural gas was also recorded. Exports of crude petroleum and natural gas were down. Support activities for oil and gas extraction fell 3.8%, particularly because of decreases in drilling activity. However, mining excluding oil and gas extraction grew 0.3% as a result of increased overall production at copper, nickel, lead and zinc mines.

Oil and gas extraction falls

Manufacturing output continues to rise

Manufacturing increased (+0.6%) for the third consecutive month. Growth was mainly based in the production of durable goods (+0.9%) as opposed to non- durable goods (+0.1%). Manufacturers of machinery and of transportation equipment (primarily motor vehicles) benefitted from an increase in foreign demand during the month. Gains were also posted in fabricated metal products, furniture and related products, and primary metal products. Manufacturing of computer and electronic products was down, as was wood products.

Wholesale trade declines while retail trade continues to grow

Wholesale trade retreated 0.6%, mainly because of lower wholesaling of miscellaneous products (which include agricultural supplies). Conversely, retail trade grew 0.6%, a fourth consecutive monthly increase. The November growth was largely the result of increased activity at motor vehicle and parts dealers and at clothing stores.

Construction down, home resale market up

Construction was down 0.3% as both residential and non- residential building construction decreased. Engineering and repair work was unchanged in November. In the residential sector, construction of single-family dwellings continued to decline. In non-residential building construction, the decrease in institutional and commercial buildings outweighed the increase in industrial buildings.

Activity in the home resale market increased in November, particularly in Eastern Canada, resulting in a 2.2% rise in the output of real estate agents and brokers.

The finance and insurance sector declines

The finance and insurance sector decreased 0.4%, mainly as a result of lower volume of trading on the stock exchanges. Sales of mutual funds were down slightly. The output of insurance carriers was unchanged.

Other industries

The utilities sector was down 0.6%, as unseasonably warm weather contributed to lower demand for electricity.

Some tourism-related industries, such as air transportation and accommodation and food services, grew in November.

Note to readers

The monthly gross domestic product (GDP) by industry data at basic prices are chained volume estimates with 2002 as the reference year. This means that the data for each industry and each aggregate are obtained from a chained volume index multiplied by the industry's value added in 2002. For the 1997 to 2008 period, the monthly data are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price input- output tables.

For the period starting with January 2009, the data are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are 2008 industry prices.

This approach makes the monthly GDP by industry data 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 2011. For more information about monthly GDP by industry, see the National economic accounts module on our website.

To contact the reporter on this story: Ilan Kolet in Ottawa at ikolet@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net

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