Canadian Manufacturing

Canada’s economy shrinks again in April

Manufacturing output falls for fourth consecutive month



OTTAWA—Statistics Canada has released its economic numbers for April, and they aren’t uplifting.

Canada’s real gross domestic product contracted by 0.1 per cent in April. The news came as an unpleasant surprise, as economists had predicted a slight rebound after the negative performance of the first-quarter of 2015. The drop is the fourth consecutive month economic output has been in the red.

“A decrease in the output of goods-producing industries outweighed an increase in service industries,” Statistics Canada said.

While the service industry gained 0.3 per cent in April – for its third-consecutive gain – goods producers saw their output fall by 0.8 per cent, primarily as a result of a contraction in mining, quarrying, and oil and gas extraction.

“Decreases were also recorded in manufacturing, utilities and construction. In contrast, the agriculture and forestry sector increased,” Statistics Canada said.

The 0.2 per cent drop in manufacturing output was led by a 0.3 per cent loss in non-durable good manufacturing, with food and paper manufacturing making up the bulk of the loss. In contrast, the beverage and tobacco, textile, clothing and leather as well as plastic and rubber products manufacturing were up.

Durable-goods manufacturing also edged down 0.1 per cent in April, and machinery, transportation equipment and miscellaneous manufacturing were also down. There were some encouraging gains in computer and electronic products manufacturing, however, as well as in primary metal and furniture products.

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