Real gross domestic product (GDP) grew 6.5 per cent in June, following a 4.8 per cent increase in May, the largest monthly increase recorded since Statistics Canada began the GDP by industry series back in 1961. The increase is a rebound from March and April when the Canadian economy suffered the steepest drops in economic activity on record.
Although May and June’s gains offset some of the declines posted in March and April, Statistics Canada says economic activity remains about nine per cent below February’s pre-pandemic levels.
Services industries overall grew 6.1 per cent during the month.
The finance and insurance sector grew 2.2 per cent in June, with insurance carriers and related activities growing 5.5 per cent. Financial investment services, funds and other financial vehicles grew 0.7 per cent. Overall, the sector contributed 0.171 per cent to the overall GDP percentage change.
In the retail trade and wholesale sectors, meanwhile, both posted double digit growth numbers month-over-month in June, lead by motor vehicle and parts dealers on the retail side, and lead by motor vehicle sales, parts and accessories on the wholesale side. The retail sector overall jumped 22.3 per cent in June, with motor vehicle and parts dealers recording a 57.4 per cent jump month-over-month in June. The wholesale sector, meanwhile, grew 15.8 per cent during the month with motor vehicle wholesaling, including parts and accessories wholesaling, growing 62.6 per cent. (This follows a 39.6 per cent decrease in motor vehicle and vehicle parts wholesaling overall during the second quarter of 2020.)
Overall, Statistics Canada says preliminary information suggests GDP will pull back in July 2020 to approximately three per cent. That estimate will be revised and released in late September.
