Wednesday, October 31, 2007

Gross domestic product by industry

In August, economic activity increased 0.2%, its average pace since the beginning of 2007. Increases in retail trade and oil extraction propelled the growth, while a decline in utilities dampened it. Both the goods- and services-producing industries advanced. Gains were also registered in construction, forestry, mining excluding oil and gas, and wholesale trade. In addition, the accommodation and food services, and financial sectors moved ahead. Conversely, utilities retreated and manufacturing stood still.

Retail trade rises sharply

Retail trade jumped 1.3% in August, following two months of decline. A surge in sales by new car dealers propelled the growth. Notable increases were also recorded by furniture, home furnishings and electronics stores, general merchandise stores (including department stores), and food and beverage vendors. These gains were partially offset by declines in the sales of gasoline stations, pharmacies and personal care stores.

Note to readers The monthly gross domestic product (GDP) by industry data are chained volume estimates with 2002 as their reference year. This means that the estimates for each industry and aggregate are obtained from a chained volume index multiplied by the industry's value added in 2002. For the 1997 to 2004 period, the monthly estimates are benchmarked to annually chained Fisher volume indexes of GDP obtained from the constant-price input-output tables. For the period starting with January 2005, the estimates are derived by chaining a fixed-weight Laspeyres volume index to the prior period. The fixed weights are the industry output and input prices of 2004. This makes the monthly GDP by industry estimates more comparable with the expenditure-based GDP data, chained quarterly. Revisions and conversion to NAICS 2002 and to reference year 2002 With this release, the monthly GDP by industry program uses the 2002 North American Industrial Classification System (NAICS) instead of NAICS 1997. In addition, the reference year for the chained dollar data and the base year for the constant price data have been changed from 1997 to 2002. As a consequence, CANSIM tables 379-0017 to 379-0022 have been terminated and replaced with the new monthly table 379-0027. This new table includes changes to the industry detail, largely caused by the conversion to NAICS 2002, which principally affect sector 51 - Information and cultural industries. The change in the reference year and base year in the new table 379-0027 changes the levels but not the growth rates of the data for the period 1981 to 2001 inclusively, as it essentially consists of a rescaling of the already published data. However, the levels and growth rates for 2002 onward have undergone the regular monthly GDP annual revision process that incorporates the more recent input-output tables for 2003 and 2004, revisions to source data and to seasonal factors, as well as improvements to some of the methodologies used to derive monthly value added by industry. To help users convert from the terminated CANSIM tables to the new table 379-0027, a concordance between the old and new vector numbers is available. This document also provides a detailed list of the changes to the industry detail. For more information, contact the dissemination agent (toll-free 1-800-887-4623; 613-951-4623; IAD-Info-DCI@statcan.ca).

Energy sector unchanged

The energy sector was essentially unchanged in August after declining in July. Crude oil production grew partly as a result of improved production facilities becoming operational, and existing facilities being reactivated following routine maintenance in July. However, natural gas production fell, primarily due to weak prices. Furthermore, utilities slipped 0.8%. Oil and gas exploration moved ahead (+1.9%) for a third month in a row after experiencing strong decreases during the February to May period.

The output of the mining sector, excluding oil and gas, leaped 2.9% in August. Both the metal ore mines and non-metallic mineral mines posted strong gains. In particular, copper, nickel, lead and zinc mining production combined reached an all-time high.

Construction posts gain

The construction sector advanced 0.5% in August, a fourth consecutive monthly increase. The gains recorded in residential construction (+0.1%) and in engineering and repair work (+0.9%) overshadowed the slip in non-residential building construction (-0.2%). The construction of multi-unit structures, as well as renovation work, propelled residential construction. However, the construction of single-family homes retreated. The increase in industrial building construction was not enough to offset the decline in commercial and public building construction.

The home resale market fell sharply in August, due primarily to significant declines in sales in Ontario and Quebec. This resulted in a 5.6% drop for the real estate agents and brokers industry, marking a return to a more normal level of activity following record-high transactions in June and July.

Wholesale trade edges up

Wholesale trade rose 0.1% in August. Gains were posted in the trade of farm products, apparel, food products, and computers and other electronic equipment. These gains were neutralized by a retreat in the wholesaling of motor vehicles (including parts), lumber and millwork, and machinery and equipment.

Manufacturing unchanged

Manufacturing stood still in August. The increase in the production of durable goods was offset by the decline in non-durable goods. Of the 21 major manufacturing groups, 11 decreased, accounting for 51% of total manufacturing value added.

Significant gains were made in motor vehicle, clothing, and beverage and tobacco manufacturing. However, the production of chemicals, motor vehicle parts, and sawmills declined.

Industrial production (the output of mines, utilities and factories) increased 0.1% in August. The gain in mining was partially offset by a drop in utilities. In the United States, industrial production remained unchanged in August. The rise in utilities was neutralized by drops in manufacturing and mining.

Other industries

Activities in the finance and insurance sector grew 0.2%. The gains in this sector were partially offset by declines realized as a result of difficulties experienced in the asset-backed commercial paper markets. The accommodation and food services sector rose 0.9% in August. The number of international travellers to Canada advanced 2.4%, particularly that of overnight visitors from the United States (+4.3%).

Available on CANSIM: table 379-0027.

Definitions, data sources and methods: survey number 1301.

The August 2007 issue of Gross Domestic Product by Industry, Vol. 21, no. 8 (15-001-XWE, free), will be available soon.

Data on gross domestic product by industry for September will be released on November 30.

For more information or to order data, contact the dissemination agent (toll-free 1-800-887-4623; 613-951-4623; IAD-Info-DCI@statcan.ca). To enquire about the concepts, methods or data quality of this release, contact Bernard Lefrançois (613-951-3622), Industry Accounts Division.

Monthly gross domestic product by industry at basic prices in chained (2002) dollars
	March 2007r	April 2007r	May 2007r	June 2007r	July 2007r	August 2007p	August 2007	August 2006 to August 2007
	Seasonally adjusted
	month-to-month % change						$ millions¹	% change
All Industries	0.3	-0.0	0.4	0.2	0.2	0.2	1,227,290	2.4
Goods-producing industries	0.1	-0.1	-0.3	0.2	-0.0	0.2	379,422	0.8
Agriculture, forestry, fishing and hunting	-0.8	0.1	-0.8	-1.1	-1.0	0.5	26,546	-3.1
Mining and oil and gas extraction	-0.7	-0.9	-1.5	2.4	-0.9	0.6	58,125	-0.1
Utilities	-1.4	3.0	0.1	-0.4	-1.4	-0.8	30,611	1.4
Construction	0.3	-0.4	0.8	0.7	0.3	0.5	77,604	4.2
Manufacturing	0.8	-0.1	-0.1	-0.8	0.7	-0.0	186,515	0.2
Services-producing industries	0.4	0.0	0.7	0.2	0.2	0.2	848,665	3.2
Wholesale trade	1.1	-0.6	2.0	0.4	1.5	0.1	72,228	3.1
Retail trade	1.7	-0.3	2.5	-0.3	-0.7	1.3	73,845	5.9
Transportation and warehousing	0.7	0.2	0.1	-0.3	1.3	0.5	57,186	2.6
Information and cultural industries	0.2	0.3	-0.2	0.6	-0.4	0.0	44,008	1.3
Finance, insurance and real estate	0.3	0.3	0.4	0.3	0.2	0.0	240,489	3.9
Professional, scientific and technical services	0.1	0.4	0.6	0.3	0.3	-0.1	57,310	3.4
Administrative and waste management services	0.3	0.4	0.5	0.4	0.3	0.2	31,846	3.4
Education services	0.1	0.2	0.1	0.2	-0.1	0.2	57,288	2.1
Health care and social assistance	0.2	0.2	0.3	0.2	0.2	0.1	76,817	2.7
Arts, entertainment and recreation	-0.0	-1.2	0.5	4.0	-1.9	-0.5	11,728	3.9
Accommodation and food services	0.6	-2.4	2.0	0.1	0.5	0.9	27,861	3.3
Other services (except public administration)	0.1	0.1	0.2	0.2	0.1	0.2	30,739	1.9
Public administration	0.1	0.0	0.1	-0.1	0.1	-0.0	67,399	1.0
Other aggregations
Industrial production	0.1	0.0	-0.5	0.2	0.0	0.1	276,004	0.2
Non-durable manufacturing industries	0.2	0.3	1.0	0.4	0.5	-0.5	74,035	-0.9
Durable manufacturing industries	1.1	-0.4	-0.8	-1.5	0.8	0.3	112,659	1.0
Business sector industries	0.4	-0.0	0.4	0.2	0.2	0.2	1,035,380	2.5
Non-business sector industries	0.2	0.1	0.1	0.1	0.0	0.1	191,795	1.7
Information and communication technologies industries	0.3	0.8	-0.9	0.8	-0.4	0.2	56,174	2.6
Energy sector	-0.9	0.2	-1.3	1.6	-0.9	0.0	86,469	-0.8
r revised p preliminary 1. Millions of chained (2002) dollars, seasonally adjusted at annual rates.

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