Economic activity up in July 2016

Québec, October 25, 2016 – Québec’s real gross domestic product (GDP) at basic prices went up 0.7% in July 2016, following a 0.1% increase in June. In Canada, GDP went up 0.5% in July. Both the goods-producing and service-producing industries were responsible for Québec’s growth. Goods-producing industries posted a 1.1% gain, while the output of service-producing industries rose by 0.5%. Québec’s GDP for the first seven months of 2016 was up 1.6% compared to the same period in 2015. In Canada, the corresponding rate was 1.4%.

The July increase in the GDP was mainly attributable to the gains observed in the manufacturing sector, although other sectors recorded significant growth as well, including utilities, transportation and warehousing, finance and insurance, and accommodation and food services. Sixteen out of the 20 major economic sectors saw their output increase in July.

Increase in the production of goods

In July 2016, goods-producing industries were up 1.1%, following a 0.1% increase in June. The following all increased their output: agriculture, forestry, fishing and hunting (+2.1%), utilities (+1.5%) and manufacturing (+1.9%). However, mining, quarrying and oil and gas extraction (–0.8%) and construction (–0.7%) decreased their output.

Rise in service production

The output of service-producing industries rose 0.5% in July, following a 0.1% increase in June and 0.5% increase in May. Several sectors experienced growth in July, including wholesale trade (+0.9%), retail trade (+0.5%), transportation and warehousing (+1.6%), finance and insurance (+1.0%), real estate and rental and leasing (+0.3%), administrative and support, waste management and remediation services (+1.5%), and accommodation and food services (+2.6%). Conversely, public administration output dropped (–0.8%).

In the first seven months of 2016, service-producing industries grew by 1.8%, while goods-producing industries were up 1.0% compared to the same period in 2015.

Manufacturing sector increased

Manufacturing sector output was up 1.9% in July, following a 1.0% rise in June and a 0.6% drop in May. July’s growth was on account of a 2.9% increase in non-durable goods manufacturing and a 1.1% increase in durable goods manufacturing.

The main non-durable goods manufacturing industries responsible for this growth were chemical products and food manufacturing. The growth in durable goods manufacturing was mainly attributable to the manufacturing of metallic products, machinery and electrical equipment, appliances and components.

Downturn in the construction industry

For the fourth consecutive month, construction industry output dropped (–0.7% in July, –0.4% in June, –0.8% in May and –0.2% in April). The decrease in July’s output was mainly on account of the losses observed in residential construction, which were themselves due to a slowdown in new housing construction (single houses, double houses and apartments). A drop in home renovations was also noted.

Increases in both wholesale and retail trade

Wholesale trade output rose by 0.9% in July, following a 0.2% drop in June and a 2.8% increase in May. The increase in July was on account of the gains recorded by food, beverage and tobacco wholesaler-distributors (+2.6%); personal and household goods wholesaler-distributors (+1.9%); and machinery, equipment and supplies wholesaler-distributors (+1.9%).

Output in retail trade went up 0.5% in July, after a drop of 0.9% in June. The increase recorded in July was mostly due to the gains registered by clothing and clothing accessories stores (+3.2%) and motor vehicle and parts dealers (+1.9%).


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