By Paul Vieira

OTTAWA--After a short yet sharp pandemic-induced plunge, Canadian economic output surged in May on the strength of retail spending and the resumption of construction activity. Another stellar month of growth is anticipated in June.

Statistics Canada on Friday said GDP in May rose 4.5% from the previous month, to 1.700 trillion Canadian dollars ($1.265 trillion). Expectations in the market were for a 3.5% increase, according to economists at Bank of Nova Scotia. The May's climb follows a revised 11.7% decline in April.

Even with May's gain, economic output remains 15% below pre-pandemic levels.

The data agency added it estimates that GDP grew 5% in June on a month-over-month basis. For the second quarter as a whole, Statistics Canada anticipates a nonannualized decline of 12%. Those estimates are subject to revision with the release of second-quarter data on Aug. 28.

Write to Paul Vieira at paul.vieira@wsj.com