Canada’s gross domestic product expanded by 0.2 per cent in May, led by manufacturing, construction and rail transportation.
Statistics Canada reported Wednesday that the manufacturing sector grew by 1.2 per cent, especially durable goods.
Construction activity grew by 0.9 per cent, led by the strongest month for residential home building in more than a year.
Transportation and warehousing grew by 1 per cent, led by the rail sector, which grew by 4.9 per cent on the back of increased demand to ship car parts, coal, petroleum, chemicals, metals and minerals.
On the down side, wholesale and retail trade both shrank, as did the mining, quarrying and oil and gas sector.
The finance and insurance sector shrank, as did utilities. But those declines were offset by slight growth in agriculture, forestry and fishing, and arts and entertainment.
On an annualized basis, the economy grew at a 1.4 per cent pace during the month. That’s slightly better than the 1.3 per cent that economists were expecting.