By Canadian Press

Economy tops expectations and grows faster than expected in January

Mar 31, 2017 | 6:00 AM

OTTAWA — The Canadian economy kicked off the year with a bang as it grew faster than expected in January with the manufacturing sector leading widespread growth.

Statistics Canada said Friday gross domestic product grew 0.6 per cent in the first month of the year on strength across both goods- and service-producing industries.

Economists had expected a gain of 0.3 per cent, according to Thomson Reuters.

“Another day, another robust reading on the Canadian economy,” CIBC economist Nick Exarhos wrote in a brief note to clients.

The strong figures for January cap a recent string of better-than-expected economic data.

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Still, Bank of Canada governor Stephen Poloz said earlier this week that he remains cautious and that risks for the economy remain.

Statistics Canada said Friday that goods-producing industries grew by 1.1 per cent in January, while service-producing industries rose 0.4 per cent. The manufacturing sector was the largest contributor to the increase as it advanced 1.9 per cent.

A partial rebound in the oil and gas industry helped the mining, quarrying, and oil and gas extraction sector, bumping it up 1.9 per cent after contracting 0.5 per cent in December.

Oil and gas extraction was up 2.0 per cent, offsetting some of its decline in December. Mining and quarrying excluding oil and gas extraction gained 1.1 per cent in January.

The Canadian Press

by Canadian Press

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Economy tops expectations and grows faster than expected in January

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