Canada’s GDP shrank by -0.1% mom in April, missing expectations of a flat print. Weakness was concentrated in goods-producing sectors, which fell -0.6% mom. Services sector offered a mild offset with a 0.1% mom gain. Just 10 of 20 industrial sectors posted growth, suggesting a broad-based soft patch.
Looking ahead, preliminary data indicates another -0.1% mom decline in real GDP for May. Mining, oil and gas extraction, public administration, and retail trade all weighed on activity, with only real estate and rental leasing providing a meaningful offset.
