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Canada GDP Edges Up 0.1% in January as Manufacturing Slumps

A preliminary February uptick faces headwinds from oil-driven price pressure alongside U.S. trade frictions.

Overview

  • Statistics Canada reported a 0.1% GDP rise for January on Tuesday after a 0.2% gain in December, beating forecasts for flat growth.
  • An advance estimate pointed to 0.2% growth in February, though the agency said the figure can be revised.
  • Goods-producing industries grew 0.2% as mining, quarrying, and oil and gas extraction gained and construction rose for a third straight month.
  • Manufacturing dropped 1.4% and services showed no growth, with wholesale trade, transportation, and real estate slipping as only nine of 20 sectors expanded.
  • Economists warned that higher crude prices tied to the Iran conflict plus U.S. tariffs imposed by President Donald Trump could squeeze household budgets and complicate Bank of Canada rate decisions.