Canada’s economy declined by 0.1% in May, but a reversal signs shown

Statistics Canada says the economy was contracted for a second straight month in May, but in June there were signs of a reversal.

The agency says that the actual GDP fell 0.1 percent in May, matching the decline in April.

The goods-producing areas were convicted for a decline in May, especially in mining, mines and oil and gas.

Manufacturing activity rose 0.7 percent in May, partially offset by 1.8 percent fall in April when the US tariff had a full impact. Statistics Canada said that manufacturing activity was 1.1 percent less in May than in March.

Transport and warehousing also overturned from April decline.

A busy month for the house, especially in Toronto, saw the activity in real estate and rental industry. And with three Canadian teams proceeded in the second round of NHL playoffs, the audience was also growing in the game industry in May.

Data agency’s initial estimate for June shows the expected rebound of 0.1 percent in the actual GDP. The agency pointed to increase growth in retail and wholesale trade, while manufacturing is expected to decline last month.

Together, the agency says that advance reading for the second quarter of the year suggests that the economy was inevitably unchanged.

The initial estimates of the agency will be updated with the release of June GDP data next month.

Bank of Canada said on Wednesday that it hoped that Real GDP fell 1.5 percent on an annual basis in the second quarter amidst considerable uncertainty to American tariffs.

The Central Bank stabilized its policy rate at the rate of 2.75 percent for the third consecutive time on Wednesday, amidst signs of flexibility in Canada’s economy.