The Globe and Mail reports in its Friday edition that Canada's economy contracted for a second straight month in May even as some sectors held up in the face of U.S. tariffs. A Canadian Press dispatch to The Globe says real gross domestic product fell 0.1 per cent in May, Statistics Canada said Thursday, matching the decline in April. The agency said goods-producing sectors were to blame for the drop, particularly in mining, quarrying, and oil and gas extraction. RBC pointed to wildfires in the Prairies temporarily dragging down oil and gas activity. "The good news here is that the Canadian economy seems to have soldiered through the period of maximum trade uncertainty with less damage than initially expected," BMO chief economist Doug Porter said in a note to clients Thursday. Statscan's early estimates for June show an expected rebound of 0.1 per cent in real GDP. The agency pointed to strength in retail and wholesale trade driving the growth. Taken together, the agency said its advance reading for the second quarter of the year shows the economy was essentially flat. Its early estimates will be updated with the release of the June GDP figures next month. Lingering trade uncertainty continues to affect growth.
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