Canada's economy expands despite oil and gas slowdown
GDP in May at 1.6% on service-sector growth
Canada's economy expanded for the fifth month in a row, as gross domestic product was 1.6 per cent higher in May than the same month a year ago.
Statistics Canada reported Wednesday that on a monthly basis, the GDP expanded by 0.2 per cent, just shy of expectations for 0.3 per cent.
Most sectors of the economy expanded, but the service sector led the way, expanding by 0.5 per cent. On the other side of the spectrum, Canada's goods-producing industries contracted by 0.3 per cent.
The resource sector was a particular source of weakness, shrinking by 1.7 per cent in the month.
That's the second straight month that sector has declined, as mining, quarrying, and oil and gas extraction shrank by 1.6 per cent in April.
"The drag came from mining/oil/gas, which subtracted one-tick from growth overall by dropping 1.7 per cent," CIBC said in a commentary. "
"June will be a wild card, as it will be swamped by the Calgary flood impacts," the bank's chief economist Avery Shenfeld noted.