Economy grew 0.5 per cent in January, Statistics Canada reports
OTTAWA –
Economic development resumed in January and got here in higher than first anticipated following a small contraction in December, Statistics Canada stated Friday.
Real gross home product rose 0.5 per cent to start out the 12 months, the company stated, beating its preliminary estimate for a acquire of 0.3 per cent for the month and reversing a contraction of 0.1 per cent within the closing month of 2022.
Statistics Canada additionally stated its preliminary estimate for February signifies development continued with a acquire of 0.3 per cent, although it cautioned the determine shall be up to date.
“There were many indications that the economy got off to a solid start in 2023, but today’s double-barrelled blast of strength is well above even the most optimistic views,” BMO chief economist Douglas Porter wrote in a report.
“Even if growth stalls in March, it now looks like Q1 will post growth of 2.5 per cent, up from a flat read in Q4. While we continue to look for a notable cooldown in the next two quarters, we are bumping up our GDP growth estimate for all of 2023 by three ticks to 1.0 per cent.”
The development in January got here as goods-producing industries gained 0.4 per cent for the month, whereas services-producing industries rose 0.6 per cent.
Statistics Canada stated most of the major drivers for development in January additionally contributed essentially the most to the decline in December.
The wholesale commerce, transportation and warehousing, and mining, quarrying and oil and fuel extraction sectors all rebounded after falling within the earlier month.
Wholesale commerce gained 1.8 per cent in January, helped by wholesalers of equipment, tools and provides, whereas the mining, quarrying and oil and fuel extraction sector grew 1.1 per cent after falling 3.3 per cent in December.
The transportation and warehousing sector added 1.9 per cent in January, greater than offsetting a drop of 1.1 per cent in December that was due partially to dangerous climate.
This report by The Canadian Press was first revealed March 31, 2023
