Overall economic growth numbers dropped a notch, nationwide, at the start of the second quarter of 2014. Numbers from Statistics Canada quoted by Business News Network showed that a fall in oil and gas usage contributed to the 0.1 percent decline.
Scheduled maintenance contributes to the drop
Maintenance at a number of companies was said to be the major contributor to the decline but also lower energy consumption played a role, according to the news report. There were also drops across the board with mining and quarrying seeing a 1.3 percent slide after a seasonal adjustment. There's some good news in the report, though, as the overall growth of the Canadian economy was actually up and the sectors that saw the minor falls in productivity are forecast to regain the slight losses in the next quarter.
Nationwide growth was prevalent
While there were some sluggish reports in the skilled trades sector the overall growth throughout the provinces was pegged at 2.1 percent from the same period last year. The Globe and Mail reports that the Royal Bank of Canada was not pleased with the numbers.
"The modest increase in overall April GDP is disappointing, as it implies only limited strengthening from weather-related weakness in the first quarter," said Paul Ferley, an RBC assistant chief economist. Even assuming further modest gains in May and June, the data is consistent with [second-quarter] annualized growth rising to only 2.0 per cent,"
Other sectors showed modest growth in the second quarter as manufacturing grew by .02 percent. Economists are saying that the U.S. needs to see an increase in growth because, as Canada's dominant trading partner, said the Globe & Mail, their growth woes impact what happens all across the economic front here at home.
While market analysts have forecast growth in the third quarter, Canadian observers at the Bank of Montreal said unless the U.S. sees a significant growth spurt in the summer months the Canadian growth rate will wallow at the 2 percent level.
"What's required now is for the U.S. economy to find a higher gear, because the domestic sources of growth in Canada are looking pretty tired", said the Bank's Douglas Porter. Until then, Canada looks stuck in a 2-per-cent world for growth, and a 1-per-cent world for [Bank of Canada] overnight [interest] rates."
Manufacturing, mining and oil and gas, though, are all expected to experience increased orders and a spike in productivity through the summer season, according to the Statistics Canada report.