GDP results out for Canada and U.S.

TORONTO, Ont. – It was a double dose of negative results on GDP in Canada and the United States, Friday.

Statistics Canada said the Canadian economy shrank by 0.3 per cent in May after a stagnant April, while in the U.S., the second-quarter GDP climbed just 1.3 per cent, according to the Commerce Department.

In Canada, Statistics Canada said the shrinkage comes on the heels of a stagnant April. The last rise in the real gross domestic product was the 0.3 per cent increase recorded in March.

Mining, oil and gas extraction, manufacturing and construction all fell in May. There was growth in the wholesale and retail trade, the public sector and utilities as well as the finance and insurance sector.

Mining and oil and gas fell 5.3 per cent in May after two consecutive monthly increases. Wildfires in northern Alberta and bad weather, as well as maintenance shutdowns, reduced oil and gas by 4.2 per cent.

Manufacturing fell by 0.4 per cent, with production of non-durable goods off 1.4 per cent. Production of durable goods increased 0.4 per cent.

Refinery output was down significantly, as maintenance shut a number of plants.

Production of  motor vehicles and parts fell 0.5 per cent in May, after a larger slump in April, which was blamed on the after-effects of the Japanese tsunami.

However, production of computer and electronic products, chemicals and machinery rose.

Construction slipped 0.3 per cent as declines in engineering, repair work and non-residential construction outweighed an increase in home building.

Wholesale trade advanced 1.0 per cent, with growth in machinery and equipment as well as agricultural supplies. Wholesaling of petroleum products and motor vehicles was down.

Retail trade grew by 0.2 per cent with higher sales at building material and garden equipment stores and general merchandise stores.

Work on the 2011 census helped drive public-sector growth, the statistics agency said.

In the U.S., the Commerce Department also downwardly revised the January-March figures to show growth of just 0.4 per cent, the weakest since the recession ended two years ago.

Consumer spending was almost flat this spring. It increased only 0.1 per cent, after 2.1 per cent growth in the winter. Spending on long-lasting manufactured goods, such as autos and appliances, fell 4.4 per cent.

Government spending fell for the third straight quarter. And state and local governments cut spending for the seventh quarter in eight since the recession ended.

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