Canada's real GDP grew 0.3% month-over-month in May, surpassing the 0.2% market estimate and marking the second consecutive monthly increase. The prior month's figure was revised upward to 0.6% from 0.5%. The back-to-back gains suggest sustained economic momentum heading into the summer, a data point the Bank of Canada weighs alongside inflation and labor market indicators in its rate decisions.

Growth was broad-based, with 13 of 20 industrial sectors posting gains. Goods-producing industries rose 0.6%, while services-producing industries advanced 0.2%, led primarily by real estate and rental & leasing and public administration.

June Advance Estimate

Preliminary 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. If confirmed, a third consecutive monthly increase would reinforce the picture of steady expansion through the second quarter. 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.

Sector Details

Mining, quarrying, oil & gas extraction: +1.0% — Two of the three subsectors expanded for the second consecutive month.

Public sector: +0.3% — Gains were seen across education, health care & social assistance, and public administration.

Construction: +0.8% — All subsectors moved higher. Engineering & other construction rose 1.1%. Residential building construction gained 1.1%, led by apartment building construction.

Real estate & rental and leasing: +0.4% — Broad-based gains were recorded across all subsectors. Offices of real estate agents, brokers & related activities surged 5.1%, the second consecutive monthly increase and the largest monthly gain since October 2024, reflecting stronger home resale activity, particularly in Ontario and British Columbia. The pickup in resale activity in these major markets aligns with the interest-rate-sensitive housing sector's responsiveness to the Bank of Canada's monetary policy trajectory.

Manufacturing: +0.3% — Most manufacturing subsectors posted gains.

• Non-durable goods manufacturing: +1.0% — Fourth consecutive monthly increase. Chemical manufacturing rose 5.9% after three straight monthly declines. Pharmaceutical & medicine manufacturing jumped 9.4%, supported by stronger exports.

• Durable goods manufacturing: -0.2% — Declines were led by machinery (-2.2%), miscellaneous manufacturing (-7.5%), and electrical equipment, appliances & components (-4.0%). These were partly offset by gains in fabricated metal products (+2.5%) and motor vehicle manufacturing (+4.7%).