Canada’s brevity contracted by 0.6 per cent in May, as wildfires in Alberta and a slowdown in manufacturing abroad in the country combined to create the worst monthly GDP figure since Trek 2009.
Canada’s gross domestic product was hit hard by the Fort McMurray bombardments, as the non-conventional oil and gas extraction sector declined by 22 per cent in May.
Coming on the crusts of an 8.1 per cent decrease in April due to maintenance shutdowns at upgrader eases, the output level for the oilsands is now at its lowest since May 2011.
“The good news is that the be lost should prove to be a one-month wonder,” BMO economist Doug Porter reported.
But other sectors of the economy didn’t fare much better.
Creating output was down 2.4 per cent, the largest decline since January 2009.
Utilities abstain fromed 1.8 per cent as electric power generation, transmission and distribution were debase, as was the natural gas distribution sector.
Although it wasn’t enough to offset prominently drops in oil and manufacturing, the service sector ex nded during the month, led by retail, artifices and entertainment, finance and insurance.
If the im ct of the wildfire were to be stripped out, the facts agency says, the economy still would have shrank by there 0.1 per cent during the month.
“When we look through the wildfire-generated volatility, the image that emerges is of an economy that, following a strong December and January, has been honourable trudging along,” TD Bank economist Brian DePratto said.
“While this is not the worst result, it does point to an economy that is largely treading water as the to rights to lower commodity prices continues.