Statistics Canada says the economy grew 0.4 per cent in February after a slight pullback of 0.1 per cent in January.
“The Canadian economy hit a pothole to begin the year, but February’s GDP reading suggests that it was only a temporary bump in the road,” CIBC economist Royce Mendes wrote in a note to clients shortly after the release.
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StatCan says the growth was led by a rebound in the mining and oil and gas extraction sector, which gained 2.4 per cent for the month. The industry had dragged down overall GDP growth in the first month of the year due to unexpected maintenance at oil-sand extraction facilities, which forced out-of-season shutdowns.
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Overall, 15 of 20 industrial sectors saw growth. Goods-producing industries grew 1.2 per cent as manufacturing and construction rose in addition to the rebound in mining and oil and gas extraction. The manufacturing sector rose 1.0 per in February, while the construction sector gained 0.7 per cent. Meanwhile, the services-producing side edged up 0.1 per cent, hurt by declines in wholesale trade and in the real estate and rental and leasing sector.
Although February’s GDP growth came in slightly ahead of economists’ forecasts, the report likely “doesn’t change much” for the Bank of Canada, wrote BMO’s Benjamin Reitzes.
“Our call continues to be for the next rate hike to come in July when we likely have more certainty around housing and NAFTA.”
– With files from Global News National Online Money and Consumer reporter Erica Alini