Canada's GDP in May fell slightly by 0.1% from the previous month. Economic contraction in the second quarter may be avoided.

Data released on Thursday showed that Canada's GDP fell by 0.1% month-on-month in May, in line with expectations, but the recovery in some industries is expected to drive economic growth in June. Statistics Canada's preliminary estimate suggests that GDP may increase by 0.1% month-on-month in June, which means the annualized growth rate for the second quarter could reach 0.1%. This expected growth contradicts the shrinking prospects predicted by most institutions, and the final data will be released next month. The data shows that the economic decline in May was mainly dragged down by the retail trade sector, which shrank by 1.2%, with 7 out of 12 sub-industries contracting. The services sector, which accounts for 75% of GDP, remained stable overall, with growth in real estate and transportation offsetting the decline in retail trade. In the goods-producing sector, which accounts for 25% of the economy, the mining, quarrying, and oil and gas extraction sector performed the weakest, shrinking by 1% in that month. However, the manufacturing sector saw a month-on-month growth of 0.7%, reversing the 1.8% decline in April, with inventory increases cited as the main driving factor, according to statistical agencies.