- David Madani, Capital Economics
Canada's gross domestic product remained unchanged in February, as a decline in oil rigging and drilling was offset by an increase in consumer spending. According to Statistics Canada, real gross domestic product showed no change in February versus January. The statistical agency also revised January's monthly GDP to a drop of 0.2% from an originally reported 0.1%, and revised the December print to a rise of 0.4% from an originally reported 0.3%. The Bank of Canada predicts the first quarter will see no growth, with the effect of cheap oil prices likely to be front-loaded to the beginning of the year. The second and third quarters are estimated to rebound at 1.8% and 2.8%, respectively.
Although oil and gas extraction climbed 0.1% in February, support activities for the mining and energy sector plunged 15.4% amid a decline in rigging and drilling services. It was the biggest drop since March 2009. Manufacturing activity also slumped 0.8%, driven lower by a fall in durable goods manufacturing. Overall, the goods producing sector contracted 0.2%. In contrast, the service sector rose 0.1%. Retail trade increased by 1.5%, marking its first rise in three months. Other growth-supporting components included the finance and insurance sector, as well as the public sector - education, health, and public administration.
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