August 17, 2026

Real gross domestic product (GDP) grew 0.3% in May, rising for a second consecutive month, as both goods-producing and services-producing industries expanded in the month. Overall, 13 of 20 industrial sectors contributed to the growth.

Chart 1
Real gross domestic product increases in May

Goods-producing industries expanded 0.6%, as most sectors comprising the aggregate rose in May. Services-producing industries rose 0.2%, driven in large part by increases in real estate and rental and leasing and public administration.

The mining, quarrying, and oil and gas extraction sector continues to lead economic growth for the second straight month

The mining, quarrying, and oil and gas extraction sector expanded 1.0% in May, with two of its three subsectors growing for the second consecutive month.

Chart 2
Mining, quarrying, and oil and gas extraction sector leads the growth in May

Support activities for mining, and oil and gas extraction rose 7.3% in May, recording the seventh consecutive monthly expansion and the largest since March 2024. Support activities for oil and gas extraction (+9.8%) drove the increase within the subsector in May.

The oil and gas extraction subsector rose 0.7% in May, due to higher oil sands extraction. The oil sands extraction industry (+1.6%) continued to grow, up for a second month in a row, led by higher crude bitumen extraction in Alberta. The extraction activity was relatively elevated for the month of May, given that some of the maintenance work that typically happens in the spring was either completed earlier in the year or deferred.

The mining and quarrying (except oil and gas) subsector tempered the sector’s overall growth with a 0.7% contraction in May as lower coal mining and non-metallic mineral mining and quarrying more than offset higher metal ore mining.

Public sector continues to expand

The public sector aggregate (comprising educational services, health care and social assistance, and public administration) expanded 0.3% in May, with expansions across all comprising sectors.

Chart 3
Federal government public administration expands in May

Public administration rose 0.6% in May, reflecting increases across all levels of government. Provincial and territorial public administration (+0.9%) and federal government public administration (except defence) (+0.9%) led the growth in the month. The increase in federal government public administration (except defence) coincided with increased activity associated with the 2026 Census.

Construction expands for a second consecutive month

Construction increased 0.8% in May, as all subsectors expanded. Engineering and other construction activities (+1.1%) and residential building construction (+1.1%) contributed the most to the increase. Apartment buildings drove the increase in residential building construction.

Real estate and rental and leasing up for the fourth consecutive month

Real estate and rental and leasing expanded 0.4% in May, on widespread increases across all comprising subsectors. Offices of real estate agents and brokers and activities related to real estate (+5.1%) led the growth for the second consecutive month. This was the subsector’s largest monthly increase since October 2024 and reflected a rise in national home resale activity, particularly in Ontario and British Columbia.

Manufacturing sector grows for the second straight month

The manufacturing sector grew 0.3% in May, driven by increases in the majority of subsectors.

Non-durable goods manufacturing industries expanded 1.0% in May, up for the fourth consecutive month. Following three consecutive monthly declines, a rebound in chemical manufacturing (+5.9%) contributed the most to May’s growth, largely driven by a 9.4% increase in pharmaceutical and medicine manufacturing, coinciding with increased exports of pharmaceutical and medicinal products.

Durable goods manufacturing industries contracted 0.2% in May, driven in large part by declines in machinery manufacturing (-2.2%), miscellaneous manufacturing (-7.5%) and electrical equipment, appliance and component manufacturing (-4.0%). Increases in fabricated metal product manufacturing (+2.5%) and motor vehicle manufacturing (+4.7%) helped to temper the decline in the aggregate.

Finance and insurance grows on higher financial market activity in May

Finance and insurance increased for the second consecutive month, rising 0.3% in May. Other finance and insurance (+0.4%) as well as banking, monetary authorities and other depository credit intermediation (+0.2%) were the largest contributors to the growth, reflecting heightened activities in the equity and bond markets amid the uncertainty associated with the conflict in the Persian Gulf.

Transportation and warehousing up largely on strength in pipeline transportation in May

Transportation and warehousing increased 0.3% in May, rising for the second consecutive month.

Pipeline transportation (+2.7%) led the increase in the sector as a 3.8% increase in the pipeline transportation of natural gas coincided with higher exports of the product. Crude oil and other pipeline transportation (+1.5%) further added to the growth.

Rail transportation steamed along with 0.7% growth in May. This was the second consecutive monthly increase for the subsector. Movement of grain and wheat carloadings as well as intermodal carloadings drove the increase in the month.

Chart 4
Main industrial sectors’ contribution to the percent change in gross domestic product in May

Advance estimate for real gross domestic product by industry for June 2026

Advance information indicates that real GDP increased 0.2% in June. Increases in wholesale, finance and insurance, and retail trade were partially offset by decreases in utilities and agriculture, forestry, fishing and hunting. Owing to its preliminary nature, this estimate will be updated on August 28, 2026, with the release of the official GDP by industry data for June.

With this advance estimate for June, information on real GDP by industry suggests that the economy expanded 0.8% in the second quarter of 2026. The official estimate for the second quarter will be available on August 28, 2026, when the official estimate of real GDP by income and expenditure is released.

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