Canada's GDP Grows 0.3% in May, Exceeding Expectations

In May, Canada’s real GDP rose by 0.3% month-over-month, exceeding analysts' expectations of a 0.2% increase. This growth represents the second consecutive monthly rise, with 13 out of 20 industrial sectors reporting gains. The goods-producing industries saw an increase of 0.6%, while services-producing industries grew by 0.2%.

Key contributors to the growth included:

• Real estate and rental & leasing: +0.4%, with a significant 5.1% increase in real estate agent and broker activities, reflecting stronger home resale activity, particularly in Ontario and British Columbia.
• Public administration: +0.3%, with gains across education, healthcare, and social assistance sectors.
• Construction: +0.8%, with all subsectors moving higher, particularly engineering and residential building construction, both up by 1.1%.
• Manufacturing: +0.3%, where most subsectors reported gains. Notably, non-durable goods manufacturing increased by 1.0%, with chemical manufacturing rising by 5.9% after previous declines.

For June, preliminary data suggests a further increase in real GDP of 0.2%, driven by growth in wholesale, finance, insurance, and retail trade, although partially offset by declines in utilities and agriculture, forestry, fishing, and hunting. This preliminary estimate will be updated on August 28, 2026, when official GDP data for June is released.

Overall, the data indicates a resilient Canadian economy, with various sectors contributing to growth, despite some areas facing challenges.