Canadian gross domestic product flat in February after hot start to 2017

Economy cools in February after hot start to 2017

OTTAWA — Canadian economic growth took a pause in February after the break-neck pace seen at the start the year.

Statistics Canada said Friday gross domestic product was unchanged in February, matching the expectations of economists, according to Thomson Reuters.

February followed three months of gains including stronger-than-expected growth in January.

“After the exciting growth figures of recent months, it was perhaps inevitable that the Canadian economy would take a slight breather,” TD Bank senior economist Brian DePratto wrote in a report.

Despite the result, DePratto noted that momentum heading into the year remains consistent with a solid economic expansion.

Statistics Canada said gains in service-producing industries were offset by declines in goods-producing industries for February.

Service-producing industries were up 0.2 per cent for the month as the finance and insurance sector gained 0.7 per cent. The real estate and rental and leasing sector added 0.5 per cent.

Meanwhile, goods-producing industries fell 0.3 per cent, the first move lower since October.

The manufacturing sector fell 0.6 per cent in February after growing in seven of the previous eight months, while the mining, quarrying, and oil and gas extraction group fell 0.2 per cent.

CIBC economist Nick Exarhos said the biggest headwind in February was manufacturing, but noted weakness on the goods producing side was widespread, with only construction posting an increase.

“Despite what’s been an anemic pace to business investment, and still muted plans for 2017 on that front, housing starts have had a remarkable recent run,” Exarhos wrote in a report

“Residential investment is now poised to be a modest lift to GDP this year, from a drag we had forecast earlier on. That swing explains much of the upgrade to our overall 2017 GDP outlook.”

The Canadian Press

Just Posted

Lake Country seniors receive Christmas surprise

Hampers will be given to 20 lucky seniors in need next week

Spirit of Giving

Vernon Elks Club makes Christmas merry for several groups

Protocol Technologies acquired by Edmonton company

F12.net in Edmonton buys Vernon-based Protocol Technologies

Big news for Falkland tv show

British Columbia TV show hit 42 + million American households

Lumby ‘elves’ help kids make Christmas magical

Organizers of Elves Shelves say 2017 was their “best year yet”

All aboard the Summerland Christmas Express

The first train of the Summerland Christmas Express schedule.

All aboard the Summerland Christmas Express

The first train of the Summerland Christmas Express schedule.

Meningococcal clinics open this Sunday

Interior Health is stepping up efforts to get young people vaccinated against Meningococcal.

Update: RCMP arrest domestic assault suspect west of Kamloops.

The RCMP Emergency Response Team made the arrest at around 4:30 p.m.

Owl found dead after eating rat poison leaves B.C. woman concerned

After finding the owl on her Surrey property, Christine Trozzo says the poison is a concern for kids

Change to CPP death benefit panned as insufficient to cover funeral costs

Funeral Services Association of Canada lobbied governments to raise the value to $3,580

#MeToo at work: Employers play a role in fixing culture of sexual harassment

B.C. workplaces are getting ahead of being the next MeToo debacle, calling on experts to train staff

Column: Make it a green Christmas

Instead of purchasing a cuddly stuffie this year, put your money towards helping the real thing.

B.C. woman brain injured in crash as a baby gets $1.1 million in damages

Trial heard the woman was 16 months old, being carried by her mother when they were both hit

Most Read