GDP is Up for Americas and Canada

Lafayette, CA, August 6, 2018--For the Americas and Canada, May monthly real gross domestic product was up 0.5 percent after increasing 0.1 percent in April. The increase was widespread--19 of 20 industrial sectors advanced. On the year, GDP was up 2.6 percent, according to a report by Econoday. 

• Goods-producing industries rose a monthly 0.6 percent, led by gains in mining, quarrying, and oil and gas extraction.

• Services producing industries rose 0.5 percent as all sectors increased.

• The mining, quarrying, and oil and gas extraction sector was up for the fourth month in a row - this time by 1.8 percent.

• Retail trade was up 2.0 percent, the largest increase since October 2017.

• Construction increased 0.7 percent essentially compensating for April's decline.

• The food services and drinking places sub-sector rebounded after a decline in April.

• The manufacturing sector edged up 0.1 percent following a 0.8 percent increase in April. Non-durable manufacturing rose 0.9 percent as six of nine subsectors grew. Durable manufacturing declined 0.7 percent as its 10 subsectors were evenly split between increases and decreases.

• The finance and insurance sector grew 0.4 percent as did financial investment services.

June merchandise trade deficit narrowed from C$2.7 billion in May to C$626 million in June, the smallest deficit since January 2017. Total exports increased 4.1 percent, mainly on higher exports of energy products and aircraft. Total imports edged down 0.2 percent. In real (or in volume) terms, exports rose 2.1 percent and imports were down 1.3 percent. Exports to countries other than the United States increased 8.7 percent in June to a record C$13.6 billion. Higher exports destined for Germany (aircraft), India (metal ores, potash), Belgium (nickel) and Mexico (aircraft) contributed the most to the increase. Lower exports to Hong Kong (unwrought gold) partially offset the overall gain. Imports from countries other than the United States fell 1.2 percent. Lower shipments from China (cellphones, aircraft) and the United Kingdom (motor gasoline) led the decrease.

Consequently, Canada's trade deficit with countries other than the United States narrowed from C$6.1 billion in May to C$4.7 billion--the smallest deficit since March 2017. Exports to the United States increased 2.5 percent to a record $37.1 billion, mainly on higher exports of passenger cars and light trucks. Imports from the United States edged up 0.3 percent in June. As a result, Canada's trade surplus with the United States widened from C$3.3 billion in May to C$4.1 billion. Comparing the average exchange rates of May and June, the Canadian dollar lost 1.5 US cents relative to the American dollar.

For the full report, click here