RTTNews - Canadian real gross domestic product (GDP) decreased 0.5% in May, a faster rate of decline than in the previous three months, according to data released Friday by Statistics Canada.
Economist were looking for GDP to fall 0.3% in May.
The energy and manufacturing sectors were the main contributors to May's decline. Construction and wholesale trade also decreased. Conversely, the activities of real estate agents and brokers as well as retail trade advanced in the month.
The output of the energy sector dropped a further 2.3% in May. Stats Canada noted that oil and gas extraction as well as associated support activities posted significant declines.
Both petroleum and natural gas production were hampered by falling export demand. Maintenance work at some crude petroleum facilities also lowered production. Natural gas storage increased in the month, said Stats Canada.
The manufacturing sector continued to fall in May (-1.6%). About half of the decrease was due to a 21% drop in motor vehicle manufacturing, following three months of recovery, and an 8.2% decline in parts production.
The temporary closure of two assembly plants, combined with the discontinuation of the production of a model line in Canada, contributed to this decline.
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