Canadian Manufacturing GDP
Total value of manufacturing goods and services produced in Canada over a specific time period.
- Canadian manufacturing GDP decreased by 2.1 per cent in the first quarter of 2020.
- This was the steepest of four consecutive quarterly declines in Canadian manufacturing GDP and may be attributed to COVID-19 related closures.
- At 105,500 persons, quarterly average employment in Peel’s manufacturing sector declined by 15.7 per cent in Q1 2020.
- Since COVID-19, the Canadian manufacturing sector is operating at less than capacity, which will likely lower manufacturing activities in the coming months in 2020.
Peel’s manufacturing sector represents an important (though diminishing) part of the Canadian manufacturing sector. In the absence of Peel specific data on output, changes in the Gross Domestic Product of the Canadian manufacturing sector offer some indication of possible changes in Peel.
Based on this, an assessment of both Canadian indicators of manufacturing production (GDP) and available Peel specific manufacturing indicator (manufacturing employment) are included in this section.
Canadian Manufacturing Gross Domestic Product (GDP)
Canadian manufacturing GDP declined by 2.1 per cent in the first quarter of 2020, which was the fourth consecutive quarterly decline.
In March alone, manufacturing sector contracted by 6.5 per cent, with a decline in both durable and non-durable manufacturing.
Lower manufacturing GDP was in response to business closures due to COVID-19, which will continue to negatively impact GDP in upcoming quarters.
For 2020, the change in Canadian manufacturing GDP is expected to be weak reflecting disruptions from the pandemic.
Changes in Canadian manufacturing GDP have varied over time as a result of both international and domestic influences (such as automation).
Manufacturing Employment in Peel’s Labour Market
Compared with the first quarter of 2019, quarterly average manufacturing employment in Peel’s labour market declined by 15.7 per cent.
For 2020, manufacturing employment in Peel’s labour market is expected to contract amidst business closures across the sector and physical distancing measures put in place in response to the COVID-19 pandemic.