GDP Rises 0.2% in December

March 7 2016

Real gross domestic product grew 0.2% in December, after rising 0.3% in November. Manufacturing and wholesale trade increased in December, while retail trade, mining, quarrying and oil and gas extraction as well as utilities posted notable declines.

The output of service-producing industries rose 0.3%, mainly as a result of increases in wholesale trade, the finance and insurance sector and the public sector (education, health and public administration combined). The arts, entertainment and recreation sector as well as accommodation and food services also advanced. In contrast, retail trade declined notably.

The output of goods-producing industries increased 0.2% in December. Manufacturing, construction and, to a lesser extent, the agriculture and forestry sector all rose. Mining, quarrying and oil and gas extraction as well as utilities declined.

Looking at the year as a whole, the value added of service industries rose 1.9%.  Finance and insurance (+4.5%) and the public sector (education, health and public administration combined) (+1.2%) were the largest contributors to growth in service-producing industries. The agriculture and forestry sector grew 4.4% while manufacturing edged up 0.1%. Notable declines occurred in mining, quarrying and oil and gas extraction (-3.5%), construction (-3.4%) and utilities (-1.0%). Goods-producing industries also decreased 1.6%, the first annual decline since 2009.

Chart 1 Real gross domestic product grows in December

Real gross domestic product

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Manufacturing output rises again

Manufacturing output rose 1.1% in December, following a 0.3% increase in November.

Chart 2: Manufacturing output rises in December

Manufacturing output rises in December

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After growing 0.6% in November, durable-goods manufacturing expanded 1.0% in December. Notable gains were recorded in wood products, transportation equipment and miscellaneous manufacturing in December. Conversely, the manufacturing of fabricated metal products and, to a lesser extent, machinery declined.

Non-durable goods manufacturing grew 1.1% in December, mainly as a result of gains in petroleum and coal products manufacturing and chemical manufacturing. In contrast, food manufacturing and, to a lesser extent, textile, clothing and leather manufacturing were down.

Wholesale trade expands while retail trade contracts

After rising 1.0% in November, wholesale trade expanded 1.8% in December, as most trade subgroups posted growth. Motor vehicle and parts wholesaling, and building materials and supplies wholesaling were major contributors to the growth in December. In contrast, miscellaneous wholesalers (including wholesalers of agricultural supplies) declined.

Retail trade contracted 1.8% in December on the weakness of almost all trade subgroups, following a 1.5% rise in November. Declines were notable at motor vehicle and parts dealers, clothing and clothing accessories stores, food and beverage stores as well as general merchandise stores in December. Conversely, furniture and home furnishings stores posted gains.

The finance and insurance sector advances

The finance and insurance sector advanced 0.9% in December. Banking, insurance services as well as financial investment services all increased.

Mining, quarrying, and oil and gas extraction falls

Mining, quarrying, and oil and gas extraction fell 0.7% in December, after rising 0.4% in November.

After rising 1.6% in November, oil and gas extraction fell 0.6% in December, as a result of a decline in natural gas extraction. Non-conventional oil extraction and conventional crude petroleum extraction were up in December.

Support activities for mining and oil and gas extraction contracted 7.4% in December, as a result of declines in both rigging and drilling services.

In contrast, mining and quarrying (excluding oil and gas extraction) rose 1.7% in December, mainly as a result of increases in metal ore and coal mining. Potash mining was down in December.

Utilities contract

Utilities contracted 2.6% in December as a result of decreases in both electricity generation, transmission and distribution and natural gas distribution. Unseasonably warm weather in many parts of the country resulted in lower demand for electricity and natural gas in December.

Construction increases

Construction increased 0.6% in December. Engineering construction, residential building construction and repair construction were up. In contrast, non-residential building construction was down.

The output of real estate agents and brokers rose 0.4% in December, a third consecutive monthly gain.

The public sector grows

The public sector (education, health and public administration combined) grew 0.2% in December. Public administration, health care services as well as educational services were up.

Other industries

The arts, entertainment and recreation sector increased 2.1% in December, as a result of gains in spectator sports and related industries. Accommodation and food services were up 0.8% in December.

Chart 3: Main industrial sectors’ contribution to the percent change in gross domestic product in December

Main industrial sectors' contribution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth quarter of 2015

The value added of service industries rose 0.5% in the fourth quarter, while that of goods-producing industries declined 0.9%.
The public sector (education, health and public administration combined) and wholesale trade were the main contributors to the growth in the fourth quarter. There were also gains in the agriculture and forestry sector, retail trade, transportation and warehousing, as well as the finance and insurance sector. In contrast, mining, quarrying and oil and gas extraction, construction, manufacturing and utilities declined.

Annual 2015

The value added of service industries rose 1.9% in 2015. The value added of goods-producing industries, however, decreased 1.6%, the first annual decline since 2009.
There were notable declines in mining, quarrying and oil and gas extraction (-3.5%), construction (-3.4%) and utilities (-1.0%). The agriculture and forestry sector grew 4.4% while manufacturing edged up 0.1%.

Finance and insurance (+4.5%) and the public sector (education, health and public administration combined) (+1.2%) were the largest contributors to growth in service-producing industries in 2015. There were also notable gains in transportation and warehousing services (+3.1%), retail trade (+2.4%) and wholesale trade (+1.3%).

Source: Statistics Canada, www.statcan.gc.ca/daily-quotidien/160301/dq160301b-eng.htm?HPA.

 

Related Articles


Latest Articles

  • Hazardous Environment vs. Intrinsically Safe Sensors: Understanding the Differences

    Hazardous Environment vs. Intrinsically Safe Sensors: Understanding the Differences

    May 5, 2025 Sensors designed for industrial applications often face harsh conditions, including extreme temperatures, high humidity, exposure to chemicals, and the presence of combustible gases or dust. Two common classifications for sensors used in such environments are hazardous environment sensors and intrinsically safe sensors. While they share some overlap, they serve different purposes and… Read More…

  • The Wild and Wonderful of Thermal by FLIR – How Thermal Imaging is Augmenting More Than Just Cameras

    The Wild and Wonderful of Thermal by FLIR – How Thermal Imaging is Augmenting More Than Just Cameras

    May 5, 2025 By Krystie Johnston Teledyne FLIR OEM launched their Thermal by FLIR about six years ago, to expand support for original equipment manufacturers (OEMs) who integrate FLIR thermal camera technology into their products. Since then, these collaborations have taken thermal into completely new spaces. Mike Walters, Vice President of Emerging Product Management at FLIR… Read More…

  • Ontario Leads Residential Sector Increase in February Construction Investment

    Ontario Leads Residential Sector Increase in February Construction Investment

    May 5, 2025 Overall, investment in building construction rose 1.5% (+$331.7 million) to $22.4 billion in February, with gains being recorded across all components. The residential sector increased 1.8% to $15.7 billion, while the non-residential sector was up 0.8% to $6.8 billion. Year over year, investment in building construction grew 8.9% in February. On a constant dollar basis (2017=100), investment in building construction… Read More…

  • MCEE 2025 Marks Big Return to the Palais des congrès

    MCEE 2025 Marks Big Return to the Palais des congrès

    May 4, 2025 By Electro-Federation Canada Canada’s largest Mechanical, Plumbing, Hydronics, HVAC, Electrical and Lighting Expo did not disappoint. On April 24-25, more than 6,000 attendees flocked to the Palais des congrès in the heart of Montreal to attend the Mechanical, Conditioning, Electrical, and Equipment (MCEE) trade show to see the latest products, learn about… Read More…


Changing Scene

  • City Electric Supply Bids Farewell to Vickey Mackay and Brian Doucette

    City Electric Supply Bids Farewell to Vickey Mackay and Brian Doucette

    May 5, 2025 After decades of leadership, City Electric Supply bid a warm farewell to two incredible branch managers in their Ottawa District — Vicky Mackay (Ottawa Central & Kemptville) and Brian Doucette (Pembroke). “Their dedication, leadership, and lasting impact will be felt for years to come,” said City Electric Supply on LinkedIn. City Electric Supply are also introducing… Read More…

  • 2025 Skills Ontario Competition & Career Exploration Showcase Highlights the Future Skilled Trade and Technology Workforce

    2025 Skills Ontario Competition & Career Exploration Showcase Highlights the Future Skilled Trade and Technology Workforce

    May 5, 2025 Canada’s largest skilled trades and technology conference, the Skills Ontario Competition, is back at the Toronto Congress Centre May 5th – May 6th. Ian Howcroft, CEO of Skills Ontario, said Skills Ontario is changing lives and inspiring leaders through skilled trades and technologies through events like the Skills Ontario Competition. “We look forward… Read More…

  • Manitoba Government Honours Highest Achieving New Journeypersons

    Manitoba Government Honours Highest Achieving New Journeypersons

    May 4, 2025 The Manitoba government is proud to acknowledge the outstanding work and commitment of newly certified journeypersons, as well as recognize employers and their contributions to Manitoba’s skilled trades, Business, Mining, Trade and Job Creation Minister Jamie Moses announced last night at the Legislative Building during the 33rd annual Apprenticeship Highest Achievement Awards… Read More…

  • Acuity Acquires Sports Lighting Startup M3 Innovation

    Acuity Acquires Sports Lighting Startup M3 Innovation

    May 4, 2025  Acuity Inc. has acquired the business assets of M3 Innovation, LLC, a sports lighting startup that uses innovative technology to lower the overall cost of the installation and operation of sports lighting solutions.   The acquisition has already closed, and the solution is now part of the Acuity Brands Lighting (ABL) business portfolio. M3 Innovation’s products and innovative technology will be available through Acuity’s independent sales network as part of their Lithonia Lighting® brand and through direct sales and utility channels as part of their Holophane® brand.   “We are excited to welcome M3 Innovation to ABL. The founders are thought… Read More…