Québec, October 24, 2017. – Québec’s real gross domestic product (GDP) at basic prices went up significantly in July (+1.0%), following a 0.5% increase in June. The rise in July was observed across many sectors. In total, 16 out of the 20 major economic sectors saw their output increase in July. Most of the major economic sectors posted substantial growth. The increase recorded in the goods-producing industries was mainly on account of metal ore mining, electric power generation as well as primary metal manufacturing, fabricated metal product manufacturing, and non-metallic product manufacturing. As for service-producing industries, output was up in transportation and warehousing, health care and social assistance, accommodation and food services, and public administration (particularly the local, municipal and regional public administration subsector) in July.
Québec’s GDP for the first seven months of 2017 was up 2.8% compared to the same months in 2016. In Canada, the corresponding rate was 3.4%.
Rise in goods output
In July 2017, goods-producing industries posted a 2.1% increase. Output was up in agriculture, forestry, fishing and hunting (+1.9%), mining, quarrying, and oil and gas extraction (+11.9%), utilities (+3.6%) as well as in manufacturing (+1.8%). On the other hand, output was down in construction (-0.1%).
Service output edges up
Service output rose by 0.5% in July, following an increase of 0.2% in June. Several sectors posted gains in July, including wholesale trade (+1.4%), transportation and warehousing (+0.9%), real estate and rental and leasing (+0.3%), professional, scientific and technical services (+0.9%), educational services (+0.9%), health care and social assistance (+0.9%), accommodation and food services (+2.4%), and public administration (+0.5%). However, output was down in the finance and insurance sector (-0.6%).
In the first seven months of 2017, service-producing industries grew by 3.1%, while goods-producing industries were up 1.9% compared with the same period in 2016.
Manufacturing sector up
Output in the manufacturing sector was up 1.8% in July, after declining 0.5% in June. The rise in July was attributable to an increase of 2.1% in durable goods manufacturing and of 1.3% in non-durable goods manufacturing.
The growth in durable goods manufacturing was essentially due to the non-metallic mineral product manufacturing, primary metal manufacturing, and metal product manufacturing subsectors. In contrast, the machinery manufacturing subsector was down. As for the growth in non-durable goods manufacturing, it was mainly attributable to the paper manufacturing, chemical manufacturing, and plastics and rubber products manufacturing subsectors. In July, 15 out of 19 manufacturing industries posted growth.
Decline in the construction industry
Output in the construction industry slid by 0.1% in July, following an increase of 11.0% in June. It must be noted that the growth registered in June was due to activities resuming in the construction sector following the construction workers’ strike in May. The decrease in July was mainly on account of the losses posted in the residential construction sector, which were themselves due to a slowdown in new housing construction (single-family houses, row houses and apartments). However, there were gains in residential renovation.
Increases in both wholesale and retail trade
Wholesale trade output rose by 1.4% in July, following a 1.2% drop in June and a 0.4% increase in May. The increase in July was mostly on account of the gains recorded by machinery, equipment and supplies wholesaler-distributors (+5.1%) and building material and supplies wholesaler-distributors (+3.1%).
Output in retail trade rose by 0.1% in July, following a 0.9% increase in June. The growth in July was essentially due to the gains registered by motor vehicle and parts dealers (+4.6%) and clothing and clothing accessories stores (+2.1%).
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