The pace of growth in the Canadian economy was likely slowing down through the first quarter of the year, according to early estimates Statistics Canada.
The agency estimates real gross domestic product (GDP) grew 0.6 per cent in the quarter, or 2.5 per cent on an annualized basis.
Meanwhile, February saw GDP growth slow to 0.2 per cent, coming in below StatCan’s initial estimates for a pace of 0.4 per cent. January’s pace of real GDP growth was revised lower as well to 0.5 per cent, a tick down from 0.6 per cent initially.
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The entirety of the growth in February came from services-producing sectors, while goods-producing industries were essentially unchanged, the agency said.
The warehousing and transportation sectors saw “broad-based” gains in the month, led by a rebound in rail travel following a cold snap in Western Canada in January.
Air transportation saw its seventh monthly increase in February, with a 4.8 per cent growth rate marking the largest monthly increase for the sector since May 2022. Some air carriers were increasing flight capacity to Asia ahead of the Lunar New Year in February, StatCan said.
The mining, quarrying, and oil and gas extraction industries expanded for the fourth time in five months, while the utilities and manufacturing sectors contracted.
StatCan’s early estimates for March also show economic growth was essentially unchanged in the month, though the agency cautions these figures can be revised.
Official first-quarter estimates will be available at the end of May.
More to come…
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