Canada’s gross domestic product jumped in May at the fastest pace in four months as car makers ramped up production.
Output rose 0.4%, following a 0.1% gain in April, Statistics Canada said today in Ottawa. The result matched the median forecast in a Bloomberg economist survey with 18 responses.
The fifth straight monthly gain in domestic output adds to signs the economy is making progress on what Bank of Canada Governor Stephen Poloz said will be a two-year recovery toward full output. The central bank on July 16 estimated annualized growth of 2.5% in April-to-June period after the expansion slowed to 1.2% in the first quarter.
Manufacturing increased 0.8%, led by a 13% surge in motor vehicle production. The rise in car output, the fastest since January 2011, follows maintenance shutdowns at some plants in April, Statistics Canada said.
Wholesalers recorded a 1.2% jump in output in May, making the sector the second largest contributor of growth during the month. The expansion was broad-based, with goods-producing industries growing 0.5% and services-producing industries up 0.4%
The economy grew 2.3% in May from a year earlier.
