Canadian GDP Down 0.2%, Goods-Producing Down 0.4%, Service-Producing Down 0.1%
Headline GDP (all industries) -0.2%
Goods Producing Industries -0.4%
Service Producing Industries -0.1
Monthly GDP declined 0.2% in Feb., below analysts’ expectations of 0.2% growth. The bulk of the decline came from wholesale trade (down 1.4%) and manufacturing (down 0.7%). Nearly equal declines in durable and non-durable goods accounted for the manufacturing sector’s losses.
Retail trade, oil and gas extraction, transportation, and financials also contributed to the drop. Unscheduled maintenance shutdowns of petroleum refineries in the West accounted for some of the oil and gas sector’s losses. The US housing slowdown continues to effect Canada’s forestry industry — exports of lumber posted declines.
Advances in construction (up 0.2%), led by apartment construction, as well as gains in tourism and government-related industries were not enough to offset the contraction in economic activity.