Gross Domestic Product by Industry, December 2025
March 4, 2026
Real gross domestic product (GDP) rose 0.2% in December, driven by increases in both services-producing and goods-producing industries.
Chart 1
Real gross domestic product increases in December
Services-producing industries drove the expansion in December, rising 0.2%, led by increases in wholesale trade, public sector and transportation and warehousing. Goods-producing industries increased 0.2%, driven by increases in manufacturing and utilities. Overall, 11 of the 20 industrial sectors grew in December.
Manufacturing sector returns to growth after two consecutive monthly contractions
The manufacturing sector rose 1.2% in December, partially offsetting the back-to-back monthly declines in October and November, with expansions in durable-goods and non-durable-goods manufacturing industries.
Chart 2
Manufacturing sector expands in December
Durable-goods manufacturing industries grew 1.8%, following two consecutive monthly declines. A rebound in machinery manufacturing (+6.6%) largely recouped the declines recorded in the two preceding months. Rebounds in non-metallic mineral product manufacturing (+5.2%), computer and electronic product manufacturing (+4.1%), and miscellaneous manufacturing (+7.4%) further boosted December’s growth. Meanwhile, transportation equipment manufacturing edged down 0.1%. A rebound in motor vehicle manufacturing (+5.8%), following a global semiconductor shortage-induced contraction in November, was offset by lower motor vehicle parts manufacturing (-3.7%) and motor vehicle body and trailer manufacturing (-3.5%).
Non-durable-goods manufacturing industries rose 0.5%, increasing for the first time in three months. Chemical manufacturing (+1.3%) recorded its second consecutive monthly increase, driven by a rebound in resin, synthetic rubber, and artificial and synthetic fibres and filaments manufacturing (+9.4%). Food manufacturing (+0.8%) and plastics and rubber products manufacturing (+1.9%) further added to the increase in December.
Wholesale trade up for the first time in three months
The wholesale trade sector expanded 1.7% in December, offsetting November’s contraction, with motor vehicle and motor vehicle parts and accessories merchant wholesalers leading the recovery.
Chart 3
Motor vehicle and motor vehicle parts and accessories merchant wholesalers recovers in December
Motor vehicle and motor vehicle parts and accessories merchant wholesalers (+10.9%) led the increase, as imports of passenger cars rebounded in December. The expansion in December largely offset the decline in November, which was caused by the global semiconductor chip shortages that disrupted automotive production.
Machinery, equipment and supplies merchant wholesalers (+2.0%) recorded a second consecutive monthly increase, coinciding with higher activity in machinery manufacturing. Miscellaneous merchant wholesalers (+3.6%) rebounded, coinciding with increased activity in the mineral, ore and precious metal industry group. Meanwhile, food, beverage and tobacco merchant wholesalers (-3.0%) tempered the growth in December, down for the first time in four months.
Utilities up on widespread expansions
The utilities sector expanded 2.7% in December, recording its third consecutive monthly increase, as all industry groups grew in the month, led by electric power generation, transmission and distribution.
Electric power generation, transmission and distribution (+2.9%) recorded its largest growth since December 2024, reflecting higher hydroelectric power generation.
Natural gas distribution expanded for the third month in a row, up 2.7% in December 2025 and reflecting higher industrial and residential distributions as cold weather, particularly across the western provinces, pushed up demand for heating.
Public sector continues to grow on strength in public administration
The public sector aggregate (comprising educational services, health care and social assistance, and public administration) grew 0.2% in December. Public administration (+0.3%) was the largest contributor, driven by the expansion in provincial and territorial public administration, followed by federal government public administration.
Educational services (+0.4%) further added to the growth, while health care and social assistance was essentially unchanged in the month. Despite Quebec’s ambulance workers’ strike, announced on December 24, ambulatory health care services (+0.3%) rose and fully offset the fall in nursing and residential care facilities (-0.4%).
Transportation and warehousing grows for the second straight month
Transportation and warehousing rose 0.7% in December, on strength in transit, ground passenger and scenic and sightseeing transportation as well as couriers and messengers.
Transit, ground passenger and scenic and sightseeing transportation grew 2.9%, more than offsetting November’s decline. The growth in December was driven by a 4.1% increase in urban transit systems, as maintenance workers with the Société de transport de Montréal returned to work and paused their rotating 12-day strike in mid-November.
Mining, quarrying, and oil and gas extraction down on lower oil and gas extraction activity
Mining, quarrying, and oil and gas extraction fell 0.9% in December, which more than offset November’s expansion.
Oil and gas extraction was down 1.1%, on widespread contractions across all industries.
The mining and quarrying (except oil and gas) subsector contracted 1.4%, as all industry groups comprising the subsector decreased. Non-metallic mineral mining and quarrying (-1.6%) contributed the most to the decline, reflecting lower potash mining (-2.9%).
Support activities for mining, and oil and gas extraction tempered the decline, growing 1.6% in December.
Chart 4
Main industrial sectors’ contribution to the percent change in gross domestic product in December
Advance estimate for real gross domestic product by industry for January 2026
Advance information indicates that real GDP was essentially unchanged in January. Increases in mining, quarrying, and oil and gas extraction and finance and insurance were offset by decreases in manufacturing and real estate and rental and leasing. Owing to its preliminary nature, this estimate will be updated on March 31, 2026, with the release of the official GDP by industry data for January.
Fourth quarter 2025
Gross domestic product by industry edged down 0.1% in the fourth quarter of 2025, following a 0.6% expansion in the third quarter.
The manufacturing sector (-1.5%) contributed the most to the overall decline in the fourth quarter. The sector’s third quarterly decline in 2025, and fourth in the last five quarters, was a result of a 3.0% drop in durable-goods manufacturing, the aggregate’s largest quarterly contraction since the second quarter of 2020. Machinery (-6.6%), wood product (-6.2%), transportation equipment (-2.2%), and fabricated metal product manufacturing (-3.2%) were the largest detractors in the fourth quarter of 2025.
Educational services further added to the overall decline, with a 1.7% decline in the fourth quarter largely due to a month-long province-wide work stoppage by teachers in Alberta. Offsetting the decline were increases in health care and social assistance (+0.7%) and public administration (+0.5%).
Wholesale trade was down 1.4% in the fourth quarter, with building materials and supplies (-3.1%) and motor vehicle and motor vehicle parts (-4.6%) contributing the most to the decline.
Real gross domestic product by industry grows 1.6% in 2025
Real GDP by industry rose 1.6% in 2025, up for a fifth year in a row, though at the slowest pace in five years. Both services-producing industries (+1.6%) and goods-producing industries (+1.5%) increased in 2025, with 16 out of 20 industrial sectors expanding.
Services-producing industries drive growth in 2025
The finance and insurance sector increased 4.0% in 2025, the largest growth rate since 2021. Other finance and insurance drove the growth in the year, with a 6.6% increase on higher volume traded.
Health care and social assistance (+2.6%) and public administration (+1.1%) were among the largest drivers of growth in the economy in 2025, with both sectors rising for a fifth consecutive year. Excluding the COVID-19 pandemic decline in 2020, the educational services sector (+0.2%) posted its smallest growth since 2001, largely impacted by a labour action by the members of the Alberta Teachers’ Association that took place in October 2025.
Real estate and rental leasing rose 1.7% in 2025, despite a 2.1% decline in offices of real estate agents and brokers and activities related to real estate, as national home resales were down in 2025.
Goods-producing industries expand in 2025
Mining, quarrying, oil and gas extraction (+4.0%) was the largest contributor to growth in the goods-producing industries aggregate in 2025. The oil and gas extraction subsector (+4.4%) drove the sector’s growth. Oil and gas extraction (except oil sands) was the largest contributor to the growth (+4.8%) with its largest annual growth rate since 2022.
The construction sector (+2.3%) increased in 2025, its first growth since 2022, led by engineering and other construction activities (+3.7%) and residential building construction (+2.2%), corresponding with higher activity in the construction of multi-unit buildings.
The manufacturing sector (-2.6%) was the largest detractor to growth in 2025, down for the third consecutive year. Chemical manufacturing (-5.2%) contributed the most to the decline in non-durable-goods manufacturing industries, followed by paper (-11.0%) and food manufacturing (-2.4%). Primary metal manufacturing (-7.1%), fabricated metal product manufacturing (-4.5%) and wood product manufacturing (-2.9%) contributed the most to the 2.1% contraction in durable-goods manufacturing in 2025, all negatively impacted by the import tariffs on Canadian products put in place by the United States in 2025.
Chart 5
Main industrial sectors’ contribution to the percent change in gross domestic product in the fourth quarter
Chart 6
Main industrial sectors’ contribution to the percent change in gross domestic product in 2025
