Canada: Monthly GDP contracts in February, following strong growth in January
April 29, 2016
In February, monthly GDP fell 0.1% over the previous month in seasonally-adjusted terms. The tally contrasted the 0.6% growth recorded in January and underperformed according to market analysts, who had expected a flat reading in February. The result marked the first contraction in five months. According to statistics Canada, the goods producing sector contracted, which was reflected in the overall result. The mining, quarrying, and oil and gas extraction sector also declined on a monthly basis.
On an annual basis, GDP grew 1.5% in February, a slight deceleration from January’s revised 1.6% expansion (previously reported: +1.5% year-on-year). Despite the decrease, the overall trend remained steady in February at 0.9%, for the third consecutive month.
Author: Robert Hill, Economist