Jul 31, 2015
By Jane Brown
It’s another indicator the Canadian economy may have fallen into a recession earlier this year.
Statistics Canada says real gross domestic product fell 0.2 percent in May for the fifth consecutive monthly decrease.
The federal agency says the drop was mostly a result of contractions in manufacturing, mining, quarrying and oil and gas extraction as well as wholesale trade.
Our financial analyst MaryAnn Devenney of TD Wealth Management says the news isn’t all bad.
“If we look at a year over year basis, we’re still up about a half of a percent, but because it’s been five consecutive negative months, the chance that we are going to slip into that technical recession definition in the first half of the year, it just definitely went up,” Devenney explained to Zoomer Radio, “so obviously energy patch really is really dragging us down.”
Goods-producing industries fell 0.6 per cent in May, down for a fifth consecutive month.
Meantime, the service-providing industries edged down 0.1 per cent in May after increasing for three consecutive months.