Canada’s economy shrank by 0.1 per cent on a monthly basis in April, Statistics Canada said on Friday, with the data agency’s advance estimate for May showing a similar decline in activity.
The manufacturing sector alone dipped 1.9 per cent — the steepest drop since April 2021, per Statistics Canada — driving a decline among goods-producing industries.
Transportation equipment manufacturing was hit hard, which the data agency attributed to uncertainty caused by the trade war in the auto industry, with car manufacturers pulling back on production in response to U.S. President Donald Trump’s tariff on vehicle exports.
Wholesale trade also fell in April, particularly in sub-sectors related to autos and motor vehicle parts, as exports and imports of those products dropped.
More to come.
