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 grew 0.3% in November, following a 0.1% rise in October. Most major industrial sectors increased production in November. Goods production increased 0.6% while the output of service industries rose 0.1%.

Manufacturing and mining, quarrying and oil and gas extraction were the main contributors to the November increase. Wholesale and retail trade, utilities as well as transportation and warehousing services also rose. Construction and the public sector (education, health and public administration combined) were unchanged. In contrast, accommodation and food services and the finance and insurance sector decreased.

Manufacturing output expands

Manufacturing output expanded 0.7% in November following a 0.9% decrease in October.

Durable goods production rose 0.9% in November, on the strength of primary metal and transportation equipment manufacturing. Conversely, machinery manufacturing declined in November.

Non-durable goods manufacturing increased 0.5%. Growth in chemical, petroleum and coal products, as well as food manufacturing outweighed declines recorded by manufacturers of plastic and rubber products, beverage and tobacco products, and textile, clothing and leather products.

Mining, quarrying and oil and gas extraction increases

Mining, quarrying and oil and gas extraction increased 0.8% in November. Oil and gas extraction grew 0.8%, on the strength of crude petroleum extraction. Natural gas production decreased.

Mining excluding oil and gas extraction rose 1.6% in November. An increase in non-metallic and, to a lesser extent, metallic mineral production outweighed the decline in coal mining.

Support activities for mining and oil and gas extraction fell 0.5% in November, mainly because of a decline in drilling services.

Wholesale and retail trade rise

Wholesale trade rose 0.7% in November, mainly on the strength of the wholesaling of machinery, equipment and supplies, and petroleum products. On the other hand, the wholesaling of food, beverage and tobacco products declined.

Retail trade (+0.6%) increased for a third consecutive month in November. Motor vehicles and parts dealers were the main contributors to the growth. Retailing at electronics and appliances stores and furniture and home furnishings stores also increased. In contrast, declines were recorded at miscellaneous store retailers, and clothing and clothing accessories stores.

Construction is unchanged

Construction was unchanged in November. A decline in residential building construction was offset by increases in non-residential building and engineering construction as well as repair works.

The output of real estate agents and brokers decreased 1.1%, as activity in the home resale market declined.

Other industries

Utilities increased 1.4% in November, owing to higher demand for electricity.

Transportation and warehousing services increased 0.4%, mainly as a result of increases in rail and truck transportation, which benefitted from the strength in overall production in November. Support activities for transportation also increased, while pipeline transportation declined.

Accommodation and food services declined 0.9% in November, in parallel with a decrease in the number of overnight travellers to Canada.

Chart: Main industrial sectors’ contribution to the percent change in gross domestic product, November 2012 (http://www.statcan.gc.ca/daily-quotidien/130131/cg130131a003- eng.gif)

Note to readers

Revisions

Revised monthly national gross domestic product (GDP) by industry data covering the period January 2007 to October 2012 are released today. These changes are part of a comprehensive revision to the Canadian System of National Economic Accounts.

Periodically, monthly national GDP by industry data undergo historical revisions broader in scope than the regular revisions undertaken on an annual basis. These historical revisions are reserved for incorporating updated international national accounting concepts as well as classification updates and methodological and statistical improvements.

This release incorporates such changes back to January 2007. This release also incorporates the new input-output account benchmarks for reference year 2009, released on November 19, 2012. Revisions covering the period January 1997 to December 2006 are planned for release in September 2013.

Volume measures

The monthly GDP by industry data at basic prices are chained volume estimates with 2007 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 2007. The monthly data are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price input-output tables up to the latest input- output tables year (2009).

For the period starting with January 2010, the data are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are 2009 industry prices.

This approach makes the monthly GDP by industry data more comparable with the expenditure-based GDP data, chained quarterly.

All data in this release are seasonally adjusted. For more information on seasonal adjustment, see Seasonal adjustment and identifying economic trends (http://www5.statcan.gc.ca/bsolc/olc-cel/colc-cel?catno=11-010- X201000311141&lang=fra) .

For more information about monthly national GDP by industry, see the National economic accounts (http://www.statcan.gc.ca/nea-cen/index-eng.htm) 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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