Statistics Canada reports broad-based declines in November, with transportation and energy leading losses
Statistics Canada reported that real gross domestic product decreased by 0.2 percent in November, marking the largest monthly contraction since December 2023.
This followed a 0.3 percent increase in October. The decline was broad-based, with 13 of 20 sectors reporting lower output.
Goods-producing industries fell by 0.6 percent in November, partially reversing the 0.9 percent gain recorded in October. The decline was led by the mining, quarrying, and oil and gas extraction sector, as well as the utilities sector.
The services sector also saw a slight contraction of 0.1 percent in November after five consecutive months of growth. The transportation and warehousing industry was the largest contributor to this decline, mainly due to work stoppages.
However, real estate and rental and leasing recorded gains, offsetting some of the losses in the services sector.
Mining, quarrying, and oil and gas extraction dropped by 1.6 percent in November after a 2.2 percent increase in October. Oil and gas extraction fell by 1.5 percent, with oil sands extraction down 3.4 percent.
This marked the largest monthly drop in oil sands extraction since May 2024, driven by lower synthetic crude production and reduced crude bitumen extraction in Alberta.
Support activities for mining and oil and gas extraction declined by 4.6 percent, the sharpest decrease since December 2022. All types of supporting activities were affected.
Mining and quarrying, excluding oil and gas, contracted by 0.5 percent due to declines in coal mining, which dropped by 5.3 percent, and metal ore mining, which fell by 0.6 percent.
Copper, nickel, lead, and zinc ore mining was the largest contributor to the downturn in metal ore mining, declining by 4.9 percent. The decrease was primarily due to production delays at a copper mine in British Columbia.
In contrast, oil and gas extraction outside the oil sands sector increased by 0.4 percent, supported by higher natural gas extraction.
The utilities sector contracted by 3.6 percent in November, with electric power generation, transmission, and distribution dropping by 4.4 percent. The decrease was linked to lower demand for heating in central and eastern Canada due to unseasonably mild temperatures.
Worsening drought conditions and low precipitation further constrained electricity supplies.
The transportation and warehousing sector posted a 1.3 percent decline, the largest monthly drop since December 2022.
The postal service subsector shrank by 20.3 percent following a strike involving 55,000 workers that began on November 15, which disrupted mail and small parcel deliveries ahead of the holiday season.
Couriers and messengers, however, rose by 2.4 percent as consumers and businesses turned to alternative shipping options. Rail transportation declined by 3 percent and water transportation by 4.6 percent, both affected by labour disruptions.
Labour actions at the Port of Montréal, which began in October, escalated when the Maritime Employers Association locked out nearly all employees on November 10, effectively halting operations at most terminals.
On the West Coast, the British Columbia Maritime Employers Association locked out forepersons at all its member terminals at the Port of Vancouver on November 4. Port activities resumed after the Canada Industrial Relations Board imposed binding arbitration on November 12.
Support activities for transportation declined by 0.9 percent, while truck transportation fell by 0.8 percent, largely due to reduced cargo movement at Canada’s ports.
Real estate and rental and leasing expanded by 0.3 percent in November, marking its seventh consecutive month of growth. Real estate agents and brokers recorded a 3.4 percent increase in activity, driven by higher home sales in Ontario, Quebec, and British Columbia.
Legal services, which rely heavily on real estate transactions, increased by 0.4 percent.
Construction rose by 0.7 percent in November, continuing an expansion that began in August. Residential construction increased by 1.8 percent, posting a fourth straight monthly gain. Growth in this sector was driven by continued single-family home construction and home renovation projects.
Non-residential building construction rose by 1.3 percent, with increased industrial and public building projects leading the growth.
Several leisure-related industries, including accommodation and food services, arts and entertainment, and air transportation, expanded in November. This growth coincided with Taylor Swift’s Eras Tour in Toronto.
The accommodation and food services sector rose by 1.4 percent, the largest monthly increase since January 2023. Food services and drinking places grew by 1.1 percent, recording a third consecutive month of growth.
Accommodation services increased by 2.4 percent, with higher activity in traveller accommodation.
The arts, entertainment, and recreation sector expanded by 0.8 percent. Growth in performing arts, spectator sports, and heritage institutions was somewhat limited by lower-than-usual attendance at National Hockey League games in November.
Air transportation posted a second straight month of growth, increasing by 1.3 percent. Both domestic travel and transborder activity between Canada and the United States contributed to the rise, with a strong increase in American visitors arriving by air.
Advance estimates indicate that real GDP increased by 0.2 percent in December. Gains in retail trade, manufacturing, and construction were partially offset by declines in transportation and warehousing, real estate and rental and leasing, and wholesale trade.
Statistics Canada estimates that GDP expanded by 0.4 percent in the fourth quarter of 2024 and grew by 1.4 percent for the year. The final GDP report for the fourth quarter and full-year 2024 will be released on February 28.
Source: Statistics Canada
