Canada's Economy Shrinks 0.1% in April

Canada’s economy contracted for a ninth month in April because of falling output in the retail, manufacturing and energy industries., Bloomberg 6/30/2009 10:04:26 AM

Gross domestic product declined 0.1 percent during the month, Statistics Canada said today in Ottawa, in line with the median estimate of 21 economists surveyed by Bloomberg News. The economy contracted 0.3 percent in March.

The report adds to evidence the world’s eighth-largest economy extended its contraction in the second quarter as the global slump saps orders for Canadian exports. Canada’s economy contracted at a 5.4 percent annual rate in the first quarter, the biggest drop since 1991.

The economy contracted 3 percent in April from the same month last year.

Manufacturing recorded a 1 percent drop in April, bringing to 14 percent the contraction of the industry over the previous 12 months. Fifteen of the 21 major manufacturing groups posted monthly declines in output, Statistics Canada said.

Mining excluding oil and gas extraction dropped 3.5 percent, due to reductions in output at potash mines and other non- metallic mineral mines such as diamonds, the statistics agency said. Oil and gas extraction fell 1.1 percent, leading to a 0.5 percent decline in the energy industry.

Retail trade was down 0.6 percent in April, offsetting a 0.5 percent expansion in wholesale trade. While construction activity fell 0.1 percent, the home resale market remains buoyant, the agency said, with output of real estate agents and brokers up 8.2 percent during the month.