Canada’s gross domestic product grew 0.6% in January, not quite erasing a 0.7% decline recorded in December, Statistics Canada reported today.
Growth was broadly based in January, with wholesale trade and manufacturing leading the way, the federal agency said.
There were also gains in the financial sector, retail trade, oil and gas extraction and exploration, agriculture and accommodation and food services. But utilities, mining and forestry saw declines.
StatsCan said manufacturing activity increased 1.7% in January after suffering a 3.4% decline in December and hitting its lowest level since December 2001.
Almost a third of the January gain was due to a partial recovery in motor vehicle production — a recovery that rippled through other industries, such as rail and truck transportation.
A 2.6% increase in durable goods manufacturing outpaced a modest 0.4% increase in non-durable goods. Of the 21 major manufacturing groups, 16 increased.
Motor vehicle manufacturing advanced 12% in January after tumbling 27% in December. That drop was attributed partly to extended holiday shutdowns to reduce inventories of unsold cars.
Preliminary information for February indicates a continued recovery in motor vehicle production, although at a slower pace than in January, Statistics Canada said.
Economy grows 0.6% in January: StatsCan
- By: IE Staff
- March 31, 2008 March 31, 2008
- 09:35