Québec, September 26, 2017. – In the second quarter of 2017, Québec’s gross domestic product at market prices rose 0.6% in real terms, an annualized increase of 2.5%. In Canada, GDP was up 1.1% in the second quarter (an annualized rate of +4.5%). Compared with the first half of 2016, the Québec economy expanded by 2.6%, while the Canadian economy grew by 3.0%. That was revealed in Comptes économiques du Québec, 2e trimestre 2017,a publication of the Institut de la statistique du Québec.
Final domestic demand rises, driven by growth in household spending
Final domestic demand rose by 0.5% in the second quarter, up for the eighth consecutive quarter. This was due to an increase in both household (+0.8%) and government (+0.6%) final consumption expenditure. Gross fixed capital formation declined (-0.3%) for the first time since the fourth quarter of 2015. The decrease was observed for both businesses and governments (both down 0.3%).
Household final consumption expenditure on goods (+1.2%) grew faster than expenditure on services (+0.4%). Durable goods expenditure (+2.5%) increased substantially in the second quarter, while spending on semi-durable goods rose by 1.3%, and spending on non-durable goods, by 0.4%. Compared with the first half of 2016, household final consumption expenditure was up 3.3%.
Business investment in residential buildings declined (-0.2%) for the second consecutive quarter, a drop observed in new construction (-0.3%), renovation (-0.1%) as well as resale activities (-0.3%). Business investment in non-residential construction was also down (-2.0%), as was investment in intellectual property products (-0.7%). Following declines in the last two quarters of 2016, business purchases of machinery and equipment regained momentum (+7.4% in the first quarter and +1.6% in the second). Government investment decreased (-0.3%), mainly because of a 0.5% drop in construction.
Exports of goods and services went up (+3.9%), driven by a strong increase in international exports of goods (+7.3%). International imports also registered significant growth (+3.5%). The external trade deficit was little changed compared with the first quarter, as the improvement in the interprovincial trade balance was offset by an increase in the international trade deficit. Moreover, investment in inventories was up for the second consecutive quarter.
Gross domestic product increased in June
Québec’s real gross domestic product (GDP) at basic prices increased by 0.4% in June 2017, after a 0.4% decline in May. In Canada, GDP edged up 0.3% in June. Both goods-producing and service-producing industries were behind Québec’s growth. Goods-producing industries posted 0.7% in gains, while service-producing industries increased their output by 0.2%.
In June 2017, goods-producing industries recorded a 0.7% increase, following a 1.9% drop in May. Of all the goods-producing sectors, only construction registered growth (+9.2%) in June, as all of the other sectors were down: agriculture, forestry, fishing and hunting (-4.8%), mining, quarrying, and oil and gas extraction (-9.7%), utilities (-0.9%), and manufacturing (-0.5%).
For the sixteenth consecutive month, the output of service-producing industries was up, with an increase of 0.2% in June. Several sectors posted growth in the month of June, including retail trade (+1.1%), transportation and warehousing (+1.4%), administrative and support, waste management and remediation services (+0.8%), educational services (+0.6%), and public administration (+0.3%).
Output in the manufacturing sector was down 0.5% in June, after a 0.2% decline in May and a 0.6% increase in April. The drop in June was due to a 1.5% loss recorded in the non-durable goods manufacturing sector. Durable goods manufacturing increased by 0.3%.
The Institut de la statistique du Québec produces, analyzes and disseminates official, objective and quality statistical information on various aspects of Québec society. It is responsible for carrying out all statistical surveys of general interest. The relevance of its work makes it a strategic ally for decision makers and all those wishing to learn more about Québec.
- Jean-François Fortin
Phone: 418-691-2411, Ext. 3175
- Mario Beaulieu
Phone: 418-691-2411, Ext. 3172
- Information and Documentation Centre
or 1-800-463-4090 (toll free in Canada and the United States)
- Twitter account: twitter.com/statquebec