- Canadian GDP edged down 0.1% in February, just short of expectations for no change following a solid 0.3% gain in January
- Industries were evenly split between gains and losses, though both headline goods and services output declined
- Oil and gas extraction failed to increase despite the Alberta government scaling back mandatory production curtailments in February
- Mining excluding oil and gas fell by more than 4% for a second consecutive month
A sharp pullback in rail transportation and slower home sales, both likely held back by wintry weather, weighed on growth to the tune of 0.1 ppt - Utilities output got a boost from the cold weather, and the construction industry didn’t appear to be impacted
While January’s GDP report showed plenty of life in non-energy industries, today’s data was a bit disappointing on that front with activity slowing modestly in February. Wintry weather had a negative impact, though growth wouldn’t have been much better than flat without that factor. Today’s softer-than-expected GDP report leaves Q1 growth tracking somewhere between our 1.2% forecast and the BoC’s 0.3% call, which looked pessimistic when it was unveiled last week.
