Second Quarter of 2014
(April, May, June)
Ontario Ministry of Finance
|Real GDP (Chained $ 2007)||1.3||1.3||0.5||0.5||0.1||0.9|
|Government current spending||1.4||0.0||0.1||-0.1||-0.2||0.3|
|Machinery & equipment||2.0||-1.1||-1.5||-3.2||1.5||3.5|
|Intellectual property products||-1.7||-4.6||1.1||-1.2||-1.1||-1.0|
|Final Domestic Demand||1.3||0.4||0.1||-0.2||0.1||1.0|
|Change in Business inventories (Chained $2007 billions)||4.1||3.5||2.7||6.6||6.8||4.5|
|Nominal GDP ($ Current)||3.0||2.7||0.6||0.7||1.2||1.0|
|Net operating surplus of corporations||-1.0||-1.6||1.2||0.6||2.8||1.6|
|Primary household income||3.4||2.9||0.4||0.9||1.5||0.6|
|Household disposable income||2.5||2.6||0.4||0.9||1.5||0.5|
|Implicit price index, GDP||1.7||1.4||0.1||0.2||1.0||0.2|
Real household spending increased 0.8% in the second quarter, the strongest gain since the second quarter of 2013.
Spending on durable goods drove the second quarter gain, rebounding 4.5%, after edging down 0.3% in the first quarter when sales were dampened by inclement winter weather conditions. In the second quarter, shoppers increased purchases of large durable items such as automobiles (+5.3%) and furniture (+11.3%).
Expenditures on semi-durable goods also rebounded in the second quarter, as purchases advanced 1.3%, following a 1.5% decline in the first quarter.
Spending on non-durables declined 0.9%, with lower purchases of natural gas, gasoline and other fuels.
Household spending on services rose 0.8% in the second quarter, following a 0.3% gain in the first quarter.
Real residential construction investment rebounded 4.5% in the second quarter, after declining in the previous three quarters. This was the strongest gain in three years and was led by a 13.7% jump in spending on home ownership transfer costs. Spending on home renovations (+3.9%) and new housing construction (+0.5%) were also higher in the second quarter.
The unusually harsh winter conditions which depressed residential investment in the first quarter contributed to the second quarter rebound.
Real capital spending by Ontario businesses on machinery and equipment increased 3.5% in the second quarter, following a 1.5% advance in the first quarter. Investment in non-residential construction also increased in the quarter, rising by 0.3% for the second consecutive quarter.
Businesses increased inventories by $4.5 billion ($2007) in the second quarter, slowing from an accumulation of $6.8 billion in the first quarter. Ontario wholesalers continued to accumulate inventories in the second quarter, while retailers and manufacturers reported a decline in stocks in the quarter.
Real exports of goods and services increased 2.8% in the second quarter, rebounding from a 1.2% decline in the first quarter. Real imports were also stronger, up 2.7%, following a 1.0% decline in the first quarter.
The second quarter rebound in exports and imports was partially the result of harsh winter weather and the contraction of the U.S. economy in the first quarter.
International merchandise exports rebounded 3.4% in the second quarter, following a 2.2% decline in the first quarter. Exports of automotive products, electronic equipment and consumer goods were all stronger in the second quarter.
International merchandise imports also advanced strongly in the second quarter, rising 4.3% after declining 1.7% in the first quarter. Higher imports of automotive products, electronic equipment, and chemical and rubber products contributed to the second-quarter advance.
Gross Domestic Product measured in current dollars increased 1.0% in the second quarter, after advancing 1.2% in the first quarter. Both employee compensation and the corporate net operating surplus rose in the second quarter.
Employee compensation increased 0.7% in the second quarter, slowing from a 1.3% rise in the first quarter. The strong first-quarter growth reflected special one-time payments by the federal government to fund its employees’ pension plans.
The net operating surplus of corporations rose 1.6%, following a 2.8% gain in the first quarter.
Household disposable income increased 0.5% in the second quarter, following a 1.5% advance in the previous quarter. Ontario’s household saving rate* (the ratio of savings to household disposable income) decreased from 4.6% in the first quarter to 3.4% in the second quarter, as current dollar household consumption (+1.8%) increased at a faster pace than household disposable income (+0.5%).
*Note: Household saving is calculated in the System of National Accounts as the difference between the amount households receive as current income and their outlays for taxes and personal consumption.
Economy-wide prices, as measured by the GDP implicit price index, edged up 0.2% in the second quarter, slowing from a 1.0% increase in the first quarter.
The implicit price index for final domestic demand increased 0.6% in the second quarter, following a 1.1% rise in the first quarter.
Prices for household consumer expenditures rose 1.0% in the second quarter, following a 0.7% increase in the previous quarter. Prices were higher for food, clothing and footwear, natural gas and gasoline in the second quarter.
Machinery and equipment prices edged down 0.1%, while non-residential (+0.8%) and residential (+0.6%) construction prices advanced in the second quarter.
Export prices declined 0.3%, after rising 2.5% in the first quarter, while import prices were 0.3% higher in the second quarter, following a 2.6% rise in the first quarter. The Canadian dollar appreciated 1.2% relative to the U.S. dollar in the second quarter.
Real or volume output by industry advanced 0.9% in the second quarter of 2014, after edging up by 0.1% in the first quarter. Output in both the goods (+1.1%) and service (+0.9%) sectors advanced in the second quarter.
The wholesale trade (+3.6%), manufacturing (+1.6%) and real estate (+1.3%) sectors led second-quarter growth.
|Of which: Auto Industry||18.5||-6.0||0.1||1.4||-3.2||4.3|
|Transportation and Warehousing||2.2||0.3||-0.8||0.4||0.2||1.5|
|Information and Cultural Industries||1.7||1.7||3.1||-0.4||1.8||-0.2|
|Finance and Insurance||2.0||4.5||2.0||2.1||0.0||0.4|
|Real Estate and Leasing||2.3||2.4||0.5||0.2||0.4||1.3|
|Professional and Administrative Services||1.3||1.5||0.4||-0.1||-0.4||0.9|
|Management of Companies and Enterprises||-0.7||1.4||-0.7||0.2||2.7||0.2|
|Health Care and Social Services||1.6||1.6||0.8||0.5||0.3||0.5|
|Arts, Entertainment and Recreation||-0.9||3.1||2.6||2.5||-2.9||0.4|
|Accommodation and Food||3.0||3.0||0.5||0.6||0.7||1.1|
|Ontario Output at Basic Prices||1.4||1.2||0.5||0.5||0.1||0.9|
Note: Output by industry is defined as real gross domestic product (GDP) at basic prices in chained 2007 dollars. GDP at basic prices includes taxes net of subsidies on labour and capital inputs, but not taxes on final products.
Manufacturing sector output advanced 1.6% in the second quarter, after edging up 0.1% in the first quarter.
Seven of eleven manufacturing industries increased production in the second quarter, with the majority of the gain concentrated in the transportation equipment industry (+4.6%).
Within the transportation equipment industry, automotive production increased by 4.3%, rebounding from a 3.2% decline in the first quarter. Output in “other transportation equipment” (+6.3%) also rose in the second quarter.
Output was also higher in the food and beverage (+1.5%), chemical and petroleum (+2.0%) and wood products and furniture (+4.3%) industries.
Output in the primary and fabricated metal sector was lower in the second quarter (-1.1%).
Wholesaling activity was up by a solid 3.6% in the second quarter, after edging down by 0.3% in the first quarter. Gains were led by machinery and equipment, building materials and motor vehicle and parts wholesaling.
Production in the retail trade sector rose by 1.2% in the second quarter, following a decline of 0.6% in the previous quarter. Motor vehicle and parts and furniture retailers contributed to the increase.
Utilities output declined by 0.6% in the second quarter, the second consecutive quarterly decline. An increase in electric power utilities (+0.5%) was more than offset by a decline in natural gas and water distribution (-3.1%).
Construction sector output advanced 1.6% in the second quarter, following a 0.5% increase in the first quarter. Both residential (+2.3%) and non-residential building and engineering (+1.1%) construction rose in the second quarter.
Mining output rose by 0.9% in the second quarter, following a 1.9% increase in the first quarter. Output by copper, nickel, lead and zinc and gold and silver ore mines as well as mining support activities contributed to the second quarter gain.
Note: Construction industry output is measured by the value added of the industry. Construction investment, as reported in the expenditure-based GDP accounts, measures the spending on new construction projects.
Output in the finance and insurance sector increased 0.4% in the second quarter. Higher output in investment services led the gain, while banking industry output also rose in the quarter.
Production in the real estate and leasing sector rose 1.3% in the second quarter, following a gain of 0.4% in the first quarter.
Professional and administrative services advanced by 0.9% in the second quarter, following two consecutive quarterly declines.
Health care and social services output rose 0.5%, while public administration output fell by 0.8% in the second quarter.
Table 1: Ontario Gross Domestic Product (Income-Based)
Table 2: Ontario Gross Domestic Product (Expenditure-Based)
Table 3: Ontario Gross Domestic Product at Chained 2007 Prices
Table 4: Sources and Disposition of Ontario Household Income
Table 5: Ontario Trade
Table 6: Ontario Trade (Chained 2007 Prices)
Table 7: Ontario Deflators
Table 8: Ontario Gross Domestic Product (Income-Based)
Table 9: Ontario Gross Domestic Product (Expenditure-Based)
Table 10: Ontario Gross Domestic Product at Chained 2007 Prices
Table 11: Sources and Disposition of Ontario Household Income
Table 12: Ontario Trade
Table 13: Ontario Trade (Chained 2007 Prices)
Table 14: Ontario Deflators