The Canadian economy showed healthy growth in January. Statistics Canada reported Monday that the economy expanded 0.4%, after two months of sluggish growth. StatsCan said this was the 16th consecutive monthly increase.

The biggest gains came from the motor-vehicle manufacturing. The economy has also benefited from increased spending in the public sector. That includes more spending in educational services, health care, social assistance and public administration. Meanwhile, the coldest January in nearly a decade boosted demand for energy products.

The picture is not so rosy in the United States. The Commerce Department is reporting that consumer spending was weak last month. This weakness combines with concerns over how long the war will last, a soft labour market and higher energy prices.

U.S. personal-consumption expenditures were flat in February, for the second month in a row. After adjusting for inflation, which has been skewed higher by energy prices, consumer spending fell 0.4%, following a 0.2% decline in January. Economists are starting to use the “recession” word when referring to the American economy.

The slowed advance of coalition troops toward Baghdad and the fact that no weapons of mass destruction have been found by the invading forces is serving to weaken investor confidence.

North American stock markets have surrendered a significant amount of the gains made before the war. Toronto’s S&P composite index lost 2.4% on the week. New York’s Dow Jones industrials backed off 4.4%.

The prospects for Monday don’t look any better. Futures trading is weak. So are Asian and European markets.

Overnight, Tokyo’s Nikkei Stock Average lost 307.45 points, or 3.71%, to 7,972.71. In Hong Kong, the Hang Seng Index fell 228.91 points, or 2.58% to 8,634.45.

Meanwhile, London’s FTSE 100 index has dropped 2.1% by midday in Europe. Frankfurt’s DAX is off 4%. Paris’s CAC 40 has sunk 3.56%.