OTTAWA – Make that five in a row.
Canada\’s economy continued to contract in May, declining 0.2 per cent – well below analysts\’ expectations – as output in the energy sector fell together with manufacturing activity, adding to concerns the nation is going to another recession.
\’The quarter looks ugly': What economists say about Canada\’s shrinking economy
Economists, expecting no alternation in growth in May, were already gloomy about Canada’s chances of skirting a technical recession. Description of how the are really gloomy. Continue reading
\”The Canadian economy isn\’t from the woods just yet,\” said Nick Exarhos an economist at CIBC World Markets.
“Canadian manufacturing output is on the clear downtrend, and it is now at levels which were last seen more than a year ago. Factories became popular roughly two ticks from monthly GDP, which was an even bigger hit than the energy sector provided,” he explained after the release.
The consensus of economists was for a flat reading for gdp in May, following a 0.1-per-cent decline the prior month. As well, GDP was down 0.2 percent in March after losing 0.1 per cent in February and dropping 0.2 per cent the month before that, Statistics Canada said Friday.
Put another way, GDP overall has declined 0.8 per cent since December of last year, when the economy grew 0.4 percent.
The five-month decline marks the longest slump since the 2008-2009 recession.