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--5 Things We Learned From Canadian GDP Data
By Yali N'Diaye
     OTTAWA (MNI) - The following are the key points from the July data 
on Canadian GDP by industry released Friday by Statistics Canada: 
     - Canada GDP rose 0.2% in July after a flat performance in June, 
while analysts in a MNI survey had expected a 0.1% gain. The upward 
surprise further seals a rate hike on October 24 by the Bank of Canada, 
especially with solid details of the GDP report. 
     - The upward surprise came from the goods-producing industries, 
where output increased 0.3% despite an expected decline in oil and gas 
extraction partly due to a power outage in June at Syncrude Canada's oil 
sands, with the facility not returning to full production until 
September. That means the maintenance work could continue to weigh on 
non-conventional oil extraction in August. Oil and gas extraction was 
down 1.2% both in July and June, recording the largest back-to-back 
monthly declines since April-May 2016. However, the impact was partly 
offset by "the redistribution of production" to other facilities as well 
as record crude bitumen production in Alberta, the agency said. 
Construction was another negative contributor, with a 0.6% decrease, the 
largest since May 2017. The decline was to expect given the drop in 
housing starts. 
     - However, mining and quarrying rose 3.8%. In addition, utilities 
rose 2.1%, the largest gain since December 2016 as a heatwave affected 
the country. Overall, energy managed to pull a flat performance on the 
month. Manufacturing was another strong positive contributor, with a 
1.2% advance, the largest increase since November 2017, led by 
non-durables, where output rose 2.4%, the largest gain since June 2014. 
GDP excluding manufacturing was up 0.1% on the month.   
     - Services-producing industries increased 0.2% on the month, led by 
a 0.9% expansion in transportation and warehousing, and a 1.4% gain in 
wholesale trade. Public sector was flat. 
     - In housing, the continued increases in home resales supported the 
output of real estate agents and brokers (+1.0%). Overall real estate 
rental and leasing was up 0.3% in July. Overall, 12 of 20 industries 
recorded increases on the month, representing 68.3% of GDP, illustrating 
the widespread nature of the expansion.  
--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 
[TOPICS: M$C$$$,MACDS$]

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