Transportation and warehousing growth outpaces economy

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OTTAWA, Ont. — Growth in the transportation and warehousing sector outpaced the growth of the Canadian economy overall in April, the latest Statistics Canada survey of economic activity indicates.

Gross Domestic Product (GDP) in the transportation and warehousing sector grew by 0.5% in April, compared to a 0.1% reported growth for the economy overall.

This marked the second straight month that growth in transportation and warehousing had surpassed the growth of Canadian economy. In March transportation and warehousing GDP grew by 1.2% compared to 0.8% growth for all Canadian industries combined.

In part the growth in transportation and warehousing is fed by continuing boom in industrial production. Activity in the mining, manufacturing and utilities industries increased 0.3%, the sixth increase in the last twelve months, as higher mining and utilities output more than compensated for the weakness in the manufacturing sector. In comparison, the US index of industrial production increased 0.8%, the ninth increase in the last twelve months as all components registered gains.

The mining and oil and gas sector bounced back from two consecutive monthly declines as higher energy prices propelled the extraction and exploration of oil and gas. Production of oil and gas increased 1.8% in April and is 4.7% higher than last year’s levels. Near record oil and gas prices combined with the need to maintain current production levels bodes well for the drilling and rigging industry.

However, manufacturing contracted 0.2% in April after jumping 1.6% in March.

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