Canadian economic growth remains flat in February

The Canadian economic growth remained flat in February as gains in service producing industries failed to counter declines in goods-producers. GDP growth came in at 0 percent in February. Service-producing industries’ output expanded 0.2 percent, driven by increases in finance and insurance, real estate and professional services. Declines in wholesale trade and arts and entertainment countered these gains.

Out of five major categories, four recorded decline. Goods output dropped 0.3 percent in February. Manufacturing was the main driver of decline that fell 0.6 percent. However, the fall in manufacturing comes after three months of strong gains. Meanwhile, construction activity registered its fourth consecutive monthly gain.

Following the exciting growth figures of recent months, it was probably inevitable that the Canadian economy would take a slight pause, noted TD Economics in a research report. Figures for February dismayed expectations slightly, but they were not enough to break the recent upward trend.

“The momentum heading into the year remains consistent with a solid economic expansion of around 3.4 percent (Q/Q, annualized) for the first quarter as whole”, added TD Economics.