Wood product manufacturing GDP down by 2.7%

Statistics Canada

Real gross domestic product (GDP) rose 0.4% in August, led by increases in accommodation and food services, retail trade and transportation. The continued easing of public health restrictions and further reopening across the country increased demand across many close contact service industries.

Wood product sales fell 17.1% to $3.3 billion in August, mainly driven by lower prices for softwood lumber. Sales in constant dollars were down 3.7%, while prices for lumber and other wood products declined 14.2%. The total value of building permits in Canada decreased 2.1% in August, while exports of forestry products and building materials fell 7.9%. Despite the decline, sales of wood products were up 6.8% year over year.

Overall, 15 of 20 industrial sectors were up as growth in services-producing industries (+0.6%) more than offset a decline in goods-producing industries (-0.1%). Preliminary information indicates that real GDP was essentially unchanged in September. 

This advance estimate points to an approximate 0.5% increase in real GDP in the third quarter of 2021. Because of their preliminary nature, these estimates will be revised on November 30, with the release of the official GDP data for the September reference month and the third quarter of 2021.

The manufacturing sector was up 0.5% in August, following a 1.6% contraction in July, with non-durable goods manufacturing contributing the most to the growth. Durable goods manufacturing edged up 0.1% as fabricated metal product (+3.5%), computer and electronic product (+2.9%) and non-metallic mineral product (+2.4%) manufacturing were up, while transportation equipment (-1.7%), primary metal (-3.6%), and wood product (-2.7%) manufacturing were down.

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