Canadian economy grew 0.3% in May, paving way for 2nd-quarter rebound

Pumpjacks draw out oil and gas from well heads surrounded by Canola fields near Cremona, Alberta, in 2024. More oil and gas extraction helped grow Canada's GDP in the month of May.

Photo: La Presse canadienne / Jeff McIntosh

Canada's economy grew by 0.3 per cent in May, continuing the country's growth for a second straight month and putting the economy on track for a solid second quarter, according to Statistics Canada.

The agency says 13 of 20 industrial sectors — including construction, manufacturing, finance and insurance and the public sector — contributed to the month's gains.

The mining, quarrying, oil and gas extraction sector rose one per cent in May, leading growth for a second straight month. Some maintenance work that usually happens in the month was completed early or deferred, which paved the way for more extraction.

Transportation and warehousing also increased, as pipelines pushed more natural gas out of the country and onto the market.

Offices of real estate agents were also especially busy due to a rise in home-selling activity, boosting the real estate and rental and leasing sector.

An early estimate for June also shows the economy on track to expand by 0.2 per cent in that month. That would put the economy on track for 0.8 per cent growth for the second quarter overall, setting the economy up for a solid rebound after stagnating in previous months.

Earlier this year, slow and stagnating growth led to fears of a technical recession. (new window)

With files from the Canadian Press