Advertisement

Canadian economy shrinks in January, oil and gas sector has biggest drop since 2016

FILE -- Pumpjacks at work pumping crude oil near Halkirk, Alta.
FILE -- Pumpjacks at work pumping crude oil near Halkirk, Alta. THE CANADIAN PRESS/Larry MacDougal

Statistics Canada says the economy contracted 0.1 per cent in January.

The agency says the drop in real gross domestic product for January compared with growth of 0.2 per cent in December.

READ MORE: Canada’s unemployment rate dips below 6% for 1st time since 2008

Economists had expected an increase of 0.1 per cent for the first month of the year, according to Thomson Reuters.

Goods-producing industries fell 0.4 per cent in January, as non-conventional oil extraction fell due in part to unscheduled maintenance shutdowns at some facilities.

READ MORE: Gender equality would boost Canadian GDP by $150B, report says

Overall, the mining, quarrying, and oil and gas extraction sector posted its biggest drop since May 2016 as it fell 2.7 per cent in January.

Story continues below advertisement

Meanwhile, services-producing industries were essentially unchanged for the month as real estate and rental and leasing fell 0.5 per cent, offset by increases in the wholesale, retail, and finance and insurance sectors.

Sponsored content