Like people who make New Year’s resolutions, the Canadian economy began the year full of resolve and energy before coming back down to earth the next month.
The economy contracted 0.1% in February, according to data released Friday (April 29) from Statistics Canada.
The first decline in gross domestic product (GDP) September followed a lively month in January when the economy grew 0.6%.
"After January's barnburner GDP figure, it was not surprising to see the economy take a short pause in February," TD economist Brian DePratto wrote in a note to investors.
“One month does not a trend make however, and we continue to expect steady if unremarkable growth in the coming months and quarters.”
Wholesale trade shrank 1.8%, while the mining, quarrying, oil and gas sectors shrank 0.8% in February.
There were some positives, however, with retail trade growing 1.4% and output from real estate agents growing 1.5%.
DePratto added that despite February’s weak number, he still expects the economy to grow overall by the end of the first quarter, “likely above 3% annualized.”
