After recording declines in April and May, real gross domestic product edged down 0.1% in June, driven by contractions in goods-producing industries for the third straight month, Statistics Canada said Friday.
It was the first time GDP declined for three consecutive months since the final quarter of 2022. Overall, 11 of 20 industrial sectors contracted in June.
Goods-producing industries fell 0.5%, led by manufacturing and utilities. Manufacturing declined 1.5%, with two-fifths of manufacturers reporting they were impacted by tariffs. Utilities were down 1.2%, the fourth consecutive monthly decline. Electric power generation, transmission and distribution accounted for the entire drop, as worsening drought conditions hampered hydroelectric output.
Transportation and warehousing fell 0.3% in June after rising 0.6% in May, as most subsectors contracted. Rail transportation dropped 2.3%, with metal and mineral carloadings contributing most to the decline, led by iron ore and concentrates, coinciding with falling exports.
Automotive carloadings also fell for a third consecutive month, in line with declines in motor vehicle and parts manufacturing and exports.
The retail trade sector strengthened 1.4% in June, more than offsetting the 1.3% contraction in May, as 10 of 12 subsectors grew. Food and beverage stores (2.4%), clothing and clothing accessories stores (3.4%), and building material and garden equipment and supplies dealers (2.4%) led the increase. Growth was tempered by lower activity at non-store retailers (-2.1%) and furniture and home furnishing stores (-0.9%).
Real estate and rental and leasing rose 0.3% for a third consecutive month, as all subsectors expanded. Higher activity at real estate agents and brokers, along with related activities (3.1%), led the growth.
Construction grew 0.3% in June, the third gain in four months. Residential building construction rose 1.6%, partly offset by a 1% decline in non-residential building construction.
Mining, quarrying, and oil and gas extraction edged up 0.1% after two monthly declines. Oil and gas extraction rebounded 2.6%, driven by a 6.4% surge in oilsands extraction — the largest monthly increase since December 2020. The gains more than offset declines in April and May, as several facilities ramped up production following maintenance and wildfire disruptions.
An early estimate, which will be updated Sept. 26, indicates real GDP increased 0.1% in July.