The Canadian economy took a bit of a “breather” in February following three straight months of growth, according to data released Friday (April 28) from Statistics Canada.
GDP growth was flat overall in February.
But gains were made in the output of real estate agents and brokers (+5.3%), finance and insurance (+0.7%) and construction (+0.5%).
Meanwhile, the manufacturing sector declined 0.6%, wholesale trade fell 2.1% and mining, quarrying, and oil and gas extraction experienced a 0.2% decline.
“After averaging 0.5% growth in the three months to January, the Canadian economy took a breather in February,” BMO Economics senior economist Benjamin Reitzes wrote in a note to investors.
“While this might worry some, the prior pace was unsustainable and some payback is reasonable.”
Reitzes added Canada’s GDP is still on pace for growth “well above” 3% and could even hit the 4% mark.
“Now, we just have to hope that Canada-U.S. trade issues and/or mortgage market stress doesn’t derail the broader momentum.”
