Real GDP up 0.3% in April

The Canadian economy grew more than expected in April, helped by the oil and gas sector.

Statistics Canada says real gross domestic product grew 0.3% in April, following a 0.5% increase in March.

Economists had expected growth of 0.1% for April, according to Thomson Reuters Eikon.

The mining, quarrying and oil and gas extraction sector gained 4.5%, boosted by a 5.5% rise in oil and gas extraction.

Oilsands extraction increased 11.0%, while oil and gas extraction, excluding oilsands, was up 0.5%.

The manufacturing sector pulled back 0.8%, in April, the largest monthly contraction since August 2017.

Other sectors that struggled included finance, which contracted by 0.23% month-over-month, and retail, which contracted 0.09%real GDP grew 0.3% in April—although a report from Scotiabank noted “relatively poor growth outside of the oil patch might be expected following a very strong March.”

In another report, Royce Mendes, senior economist with CIBC, noted that the faster-than-expected growth in April only made up for recent sluggishness, bringing the year-over-year growth to a “tepid” 1.5%.

“Still, the brief period of strength combined with on-target core inflation readings will leave the Bank of Canada able to continue justifying its on-hold stance, despite renewed easing-biases from other major central banks,” Mendes wrote.

Read the full reports from Scotiabank and CIBC.

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.