OTTAWA — Canada's economy contracted for a second straight month in May even as some sectors held up in the face of U.S. tariffs.

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.

Marc Ercolao, an economist with TD Bank, said in an interview that Canada's services sectors are holding up relatively well even as trade-exposed industries feel some sting from U.S. import duties.

"We're still in the early days, but we are seeing the impact of tariffs flow through some of these industries," he said.

Manufactu

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