Canada’s economy expanded by 0.1% mom in January, beating expectations of a flat reading, as strength in resource-related sectors helped offset ongoing weakness in manufacturing.
Goods-producing industries rose 0.2% mom for a second consecutive month, supported by gains in mining, quarrying, and oil and gas extraction, alongside construction and utilities. These gains more than compensated for a contraction in manufacturing.
Services activity, however, showed little momentum. While retail trade and finance and insurance posted increases, these were offset by declines in wholesale trade and transportation and warehousing, leaving the sector broadly unchanged.
Overall, 9 of 20 industries recorded growth, reflecting a mixed but slightly positive economic backdrop.
Looking ahead, advance estimates suggest GDP rose a further 0.2% mom in February, indicating that growth is continuing, albeit unevenly across sectors.
