StatCan reports Canada’s economy expanded by 0.3% in May

Statistics Canada reported on Friday that the economy grew 0.3 per cent in May, appearing to be on track for a solid rebound in the second quarter as a whole.

StatCan said this was due to growth in both the goods and services sides of the economy, topping the agency’s initial estimate for 0.1 per cent growth in the month.

The agency reported a one per cent increase in May for the mining, quarrying, and oil and gas extraction sector. This led to economic growth for the second straight month.

StatCan noted that oilsands extraction was higher due to some usual spring maintenance activities being either completed early or deferred.

The agency said strong pipeline shipments contributed to broader growth within the transportation and warehousing sector in the month.

READ MORE: Canada’s inflation drops to 2.8% in June as gas prices fall: StatCan

In May, offices of real estate agents and brokers saw activity increase by 5.1 per cent, the subsector’s largest monthly jump since October 2024.

The public sector expanded along with the construction, manufacturing, and the finance and insurance sectors, which grew for a second consecutive month in May.

With April’s GDP revised a tenth of a point higher to 0.6 per cent and a 0.2 per cent gain expected in June, StatCan estimates the economy grew at an annualized rate of 3.4 per cent in the second quarter.

If that estimate holds, it would mark a sharp rebound from a mild contraction in the first three months of the year and top the Bank of Canada’s 2.5 per cent growth forecast for the second quarter.

At the end of August, StatCan will release its official estimates for the second quarter when it reports June GDP figures.

With Files From The Canadian Press

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