In April, Canada’s economy saw a 0.1% contraction, a trend expected to continue into May according to Statistics Canada. The manufacturing sector particularly struggled, facing a substantial 1.9% decline, primarily driven by significant drops in transportation equipment manufacturing. This downturn reflects the broader impact of trade tensions, especially the trade war affecting the auto industry, which led manufacturers to reassess production levels. Furthermore, wholesale trade fell, notably in automotive sectors, as both imports and exports related to these products decreased significantly.
Statistics Canada reported that Canada’s economy contracted by 0.1% in April, with additional declines expected in May, reflecting ongoing challenges in key sectors.
The manufacturing sector experienced a significant downturn, decreasing 1.9%, marking the sharpest fall since April 2021, with transportation equipment being particularly impacted.
The decline in the goods-producing industries was driven in part by a trade war that has influenced car manufacturers to reduce production due to U.S. tariffs.
April also saw a decrease in wholesale trade, especially in automotive-related subsectors, as both imports and exports of these products fell.
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