Statistics Canada announced that Canada's real gross domestic product (GDP) was down 0.2% in February, partly offsetting January's 0.4% increase.

After driving growth in January, goods-producing industries (-0.6%) drove the decline in February, as mining, quarrying, and oil and gas extraction and construction contributed the most to the aggregate's decline.

Services-producing industries edged down 0.1% in February as contractions in transportation and warehousing and real estate and rental and leasing were partially offset by a rise in finance and insurance. Overall, 12 of 20 industrial sectors declined in February.

Following two consecutive monthly increases, the mining, quarrying, and oil and gas extraction sector became the largest detractor from growth, down 2.5% in February, as most subsectors contracted. Oil and gas extraction contracted 2.8% in February, fully offsetting January's 2.6% expansion.

The manufacturing sector rose 0.6% in February, up for the second month in a row, in large part driven by durable-goods manufacturing industries in February.

Machinery manufacturing (+5.9%) contributed the most to the increase in the durable goods manufacturing aggregate and posted its highest increase since February 2023.

Advance information indicates that real GDP increased 0.1% in March. Increases in mining, quarrying, and oil and gas extraction, retail trade and transportation and warehousing were partially offset by decreases in manufacturing and wholesale trade.

 

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