Canada’s real gross domestic product (GDP) experienced a modest increase of 0.3% in April 2024, following a stagnant March. This growth, recorded across both goods-producing and services-producing industries, reflects a recovery in 15 out of 20 sectors, according to Statistics Canada.
The largest contributors were wholesale trade, mining, quarrying, oil and gas extraction, and manufacturing. These sectors had faced declines in previous months but showed notable recovery in April. Retail trade also contributed significantly, with food and beverage retailers and gasoline stations rebounding from previous losses.
Wholesale trade saw a robust expansion of 2.0%, offsetting March’s decline. The motor vehicle and motor vehicle parts and accessories subsector led this growth, with an impressive 8.0% increase, marking its highest monthly growth since October 2021. This surge coincided with increased motor vehicle manufacturing and higher imports of passenger cars and light trucks. Personal and household goods wholesaling also saw a significant rise of 3.5%, driven by higher sales of toiletries, cosmetics, and pharmaceuticals.
Mining, quarrying, and oil and gas extraction grew by 1.8%, largely due to a 6.9% increase in support activities for mining and oil and gas extraction. The oil sands extraction subsector, up by 2.1%, played a significant role, driven by higher synthetic crude production and crude bitumen extraction in Alberta. Meanwhile, mining and quarrying (excluding oil and gas) increased by 0.3%, with gains in metal ore and coal mining offsetting declines in non-metallic mineral mining and quarrying.
After two months of contraction, the manufacturing sector expanded by 0.4%. Durable goods manufacturing, particularly transportation equipment, saw a notable increase of 0.6%. Non-durable goods manufacturing rose by 0.2%, with chemical manufacturing leading the growth, despite a significant decline in petroleum and coal product manufacturing due to maintenance activities.
The finance and insurance sector rose by 0.4%, rebounding from a 0.3% decline in March. This increase was driven by higher activity in financial investment services, reflecting market volatility and geopolitical tensions that boosted North American market activities in April.
The arts, entertainment, and recreation sector grew by 0.9%, supported by the success of Canadian hockey teams in the NHL playoffs. The accommodation and food services sector also expanded by 1.2%, with gains in both accommodation services and food services and drinking places.
In contrast to the overall growth, the construction sector declined by 0.4%, primarily due to a 2.3% decrease in residential building construction. This marked the largest decline in residential construction since May 2023, driven by reduced activity in the construction of new homes and home renovations.