Ontario’s real gross domestic production grew by just 0.5% in the first quarter of 2005, down from 0.7% in the fourth quarter of 2004, the Ministry of Finance reported today.
A slower rate of inventory accumulation was the main drag on growth, the ministry noted. Growth was supported by household and business spending and by a modest improvement in Ontario’s net trade position. Final domestic demand increased by 1.0% in the first quarter, its strongest increase in over a year.
Canadian real GDP increased by 0.8% in the second quarter, following two consecutive quarters of 0.5% growth. Second quarter growth was in line with a 0.8% pace of growth in the US, it reported.
The Ontario economy added 9,600 jobs in August while the unemployment rate was unchanged at 6.6%. Over the first eight months of 2005, Ontario employment is up by 75,000 jobs or 1.2% compared with the same period last year. Full-time employment increased by 20,500 jobs in August, while part-time jobs fell by 11,000.
The Ontario Consumer Price Index inflation rate was 1.9% in July, year-to-year, unchanged from June. Higher gasoline prices remain a major contributor to inflation, it noted.
Ontario new motor vehicles sales jumped 10.2% in July following a 7.5% increase in June, driven by automakers’ incentives. Also, Ontario retail sales rose 1.6% in June to $11.3 billion. Over the first half of 2005, retail sales are 4.7% ahead of the same period last year.
Over the first eight months of 2005, Ontario housing starts are 6.5% below the same period in 2004. And, Ontario home resales slipped 0.8% in July from a year ago to a level of 17,744 units. Over the first seven months of 2005, home resales are 3.4% lower than the record-setting pace of last year.
Over the first seven months of 2005, the value of non-residential building permits issued in Ontario is up 2.1% from the same period a year ago; manufacturing shipments is 1.0% higher than during the same period last year; Ontario’s international merchandise exports are down 2.2% compared with the same period last year, and imports are up 2.7%.
Ontario economic growth slows in first quarter
Household and business spending prop up GDP
- By: James Langton
- September 23, 2005 September 23, 2005
- 14:50