Denison Mines announces $250 million convertible notes offering
Investing.com -- Canada’s economy contracted slightly in April, with real gross domestic product declining 0.1%, down from growing 0.2% in March, and lower than estimates of no change, according to data Statistics Canada reported Friday.
The contraction was primarily driven by weakness in goods-producing industries, which fell 0.6% overall. Manufacturing was particularly hard hit, dropping 1.9% in April, the sector’s largest decline since April 2021.
Transportation equipment manufacturing decreased 3.7%, with other transportation equipment plunging 21.6%, marking its first decline in six months. Food production fell 3.6%, while petroleum and coal product manufacturing dropped 5.9% as refineries conducted maintenance amid weakening demand.
Services-producing industries provided some offset, rising 0.1%. Financial investment services surged 3.5%, benefiting from higher equity trading volumes triggered by volatility following the announcement and subsequent pause of U.S. tariffs.
Public sector activity increased 0.4% in April, with federal public administration jumping 2.2% as election-related operations intensified. The arts and entertainment sector grew 2.8%, its strongest performance since March 2022, boosted by five NHL teams advancing to the playoffs.
Wholesale trade fell 1.9%, its largest monthly decline since June 2023. Seven of nine subsectors contracted, led by motor vehicle parts and equipment distributors amid soft trade flows.
Preliminary estimates suggest GDP contracted another 0.1% in May, adding pressure to Canada’s economic recovery. The country’s economy remains heavily dependent on the U.S. market, particularly in oil and gas extraction, which derived 60% of output and 42% of employment from U.S. demand in 2023.
The oil sands subsector shows even greater U.S. dependence, with 87% of its output and workforce tied to U.S. consumption last year. While the Trans Mountain pipeline expansion has increased exports beyond the U.S. in 2024, America remains Canada’s primary crude oil buyer, purchasing 229.8 million cubic metres of Canada’s record 240.4 million cubic metres in crude exports this year.