The main story in today’s GDP numbers is that the oil, gas and mining industries rebounded sharply in April after being hobbled by temporary maintenance and production difficulties in February and March. While the upswing in fossil-fuel and mineral extraction was large enough to boost the overall economy, other key sectors showed signs of weakness.
Manufacturing looked like a bright spot in recent months. However, Statistics Canada’s revision of previous months revealed a more mixed picture and manufacturing declined in April. Construction, another previous driver of economic growth, also turned negative in April.
Today’s revised figures indicate that public administration has been shrinking for seven consecutive months. Government austerity is already imposing a measurable drag on Canada’s economy.
UPDATE (June 30): Quoted in The Globe and Mail online
- Niall Ferguson’s Latest Idiocy (May 5th, 2013)
- Beating Back the Ghosts: Be Gone Appeals to Reinhart and Rogoff Authority. Welcome the Triumph of Reason. (April 16th, 2013)
- Back to Balance in Nova Scotia (March 25th, 2013)
- Budget 2013: Time for a real action plan, not another ad campaign (March 19th, 2013)
- Breaking The Taboo on Monetizing Deficits (February 22nd, 2013)