Finally – The Canadian Economy is on the Mend
by Maximillian on 08/08/09 at 12:42 pm
The Canadian economy is likely on the mend after a bad tumble in May, analysts said Friday after new data showed output shrank more than expected.
Statistics Canada reported Friday the gross domestic product fell 0.5 per cent in May, pulled down by a battered manufacturing sector and weak demand for energy exports.
It marked the 10th straight month of economic decline.
“Overall, it is clear that activity throttled back significantly in May,” noted Charmaine Buskas, senior economics strategist at TD Securities.
Plant shutdowns in the manufacturing sectors accounted for much of the decline, Statistics Canada said.
About half the decrease was due to a big drop in motor vehicle manufacturing after three months of recovery and a decline in parts production.
“Part of it was obviously related to the auto sector shutdowns,” said RBC chief economist Craig Wright.
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