Statistics Canada says the economy was growing for a fourth straight month in February, though there were signs momentum was fading toward the end of the first quarter.
The agency said Thursday that a 0.2% increase in real gross domestic product for February was led by a 1.8% gain in the manufacturing sector, which marked its fastest pace of growth in more than three years.
The machinery subsector led growth in the month, followed by gains from transportation equipment manufacturing. Statistics Canada noted that several auto assembly plants in Ontario were ramping back up in February after shutting down for retooling and maintenance in the previous month.
On an annual basis, manufacturing activity was 3.1% lower in February, following nearly a year of tariffs and trade threats from the United States.
The wholesale trade and transportation and warehousing sectors were also among those giving the economy a lift in February, while a contraction in the public sector and a slowdown in the arts, entertainment and recreation industry weighed on growth.
Statistics Canada said spectator sports activity was depressed in February as the NHL shuttered for two weeks with athletes competing at the Olympics Games in Italy.
The February gains were in line with Statistics Canada’s own early estimates for the month and marked the fourth month in a row of economic growth. A sharp economic contraction in October pulled the final quarter of 2025 into slightly negative territory overall.
The agency’s initial estimates for March suggest real GDP was essentially unchanged in the month, which would set the first quarter up for annualized growth of 1.7%.
It said further gains in the wholesale trade and transportation and warehousing sectors in March were offset by declines in retail trade as well as mining, quarrying and oil and gas extraction. Statistics Canada officials said seasonal maintenance in the energy sector and an explosion at a key refinery in Texas that month likely stemmed oil flows from the industry.
The Bank of Canada’s monetary policy report published alongside its rate decision Wednesday called for 1.5% annualized growth in the first quarter.
Statistics Canada’s updated figures for March GDP and the first quarter will be published at the end of May.