Canada’s economy rebounded more strongly than expected in April, with real GDP rising from March’s -0.1% mom to 0.5% mom, surpassing market expectations of 0.4% mom. The recovery was broad-based, with growth recorded in 14 of the 20 industrial sectors, while preliminary estimates pointed to a further 0.1% mom increase in May.
Goods-producing industries led the rebound, expanding 1.2% mom, driven by mining, quarrying, and oil and gas extraction. Services-producing industries also continued to strengthen, rising 0.3% mom for a third consecutive monthly increase, supported by gains in the public sector as well as transportation and warehousing. The breadth of the expansion suggests economic activity regained momentum after March’s modest contraction.
Statistics Canada’s advance estimate for May indicates growth continued, albeit at a slower pace of 0.1% mom. Strength in finance and insurance together with real estate and rental and leasing was partly offset by declines in wholesale trade and agriculture, forestry, fishing and hunting.
| Indicator | Previous | Latest | Consensus |
|---|---|---|---|
| GDP (MoM, April) | -0.1% | 0.5% | 0.4% |
| Advance GDP Estimate (May) | — | 0.1% | — |
| Goods-Producing Industries (April) | — | +1.2% | — |
| Services-Producing Industries (April) | — | +0.3% | — |
| Industrial Sectors Growing | — | 14 of 20 | — |
