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, reported Statistics Canada on Friday.

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, said the federal agency.

Mining, quarrying and oil and gas extraction sector expands

It said 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.

"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," it said.

"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 grow

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, said Statistics Canada.

"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 industry expands

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, added Statistics Canada.

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, it said.

Manufacturing increases driven by increases in other sectors

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

"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," it said.

"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."

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.

"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."