MNI 5 THINGS: Canada GDP +0.1%; Weather Weighs>

--5 Things We Learned From Canadian GDP Data

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the April data 

on Canadian GDP by industry released Friday by Statistics Canada: 

     - Canada GDP edged up 0.1% in April, slowing from March, when it 

rose 0.3%, but slightly better than the flat performance expected by 

analysts in a MNI survey, with 12 of 20 industries posting gains. 

     - While the inclement weather had positive effects on some 

industries such as utilities (+1.6%), more industries appeared to have 

been impacted negatively. In particular, retail sales dropped 1.3%, the 

largest decline since March 2016. Within housing, construction 

contracted 0.5%, the largest decrease since May 2017. Statistics Canada 

also said weather conditions "may have played a role" in the 0.9% 

decrease in food and drinking places, the largest drop since December 

2013. 

     - Goods-producing industries led the increase in April with an 

output growing 0.2%, even if it marked a third consecutive slowdown 

after strong readings of 0.6% in March and 1.1% in February. 

Manufacturing was particularly strong at +0.8%, the largest gain since 

last November, supported by higher inventory buildup. GDP excluding 

manufacturing was flat in April, following a 0.4% gain in March. 

Non-durable manufacturing rose 0.6% and durable was up 1.0%. 

     - Services were flat in April, after rising 0.2% in March, bringing 

down the 12-month growth rate to 1.8% from 2.1%. Retail was a major 

drag, even if overall GDP excluding retail trade was also up 0.1%. Gains 

in many other services industries indeed offset the retail trade 

decline. 

     - Elsewhere, energy edged up 0.1%, with GDP excluding energy also 

up 0.1% after a 0.2% gain in March. While mining fell 9.1%, oil and gas 

extraction rose 0.6%. Public sector output roose 0.2%. The U.S. tariffs 

on imports of steel and aluminum only started in June, and thus are not 

reflected in April GDP data, which overall held better than expected, 

especially considering the weather impact, which would help the BOC 

justify a rate hike in July. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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