Growth took a step back in February.
Figures released this morning by Statistics Canada revealed that real gross domestic product decreased 0.2% in February following a 0.5% increase in January. Manufacturing and, to a lesser extent, wholesale trade were the main sources of the decline. The decrease in manufacturing resulted in a 0.6% decline in goods-producing industries.
Service producing industries were essentially unchanged as increases in retail trade, professional and financial services as well as in the public sector were offset by decreases in wholesale trade and transportation services.
After a 2.5% increase in January, manufacturing production fell 1.6% in February, with 16 of the 21 major groups decreasing. Although the reduction was broadly based in both durable and non-durable goods, manufacturers of motor vehicles and associated parts (-7.5%), machinery (-3.3%) and fabricated metal products (-2.7%) recorded the largest decreases. In contrast, wood product manufacturing increased.
The nation's number crunchers also said wholesale trade fell 1.0% in February following four consecutive monthly increases. The majority of the subsectors reported declines, with the largest in motor vehicles. Retail trade was up 0.6%, mainly as a result of increases at clothing and accessories stores.
The finance and insurance sector grew 0.2% in February. This was primarily a result of increased financial intermediation (lending and sales of mutual funds) and higher volume of trading on stock exchanges. Lower output was recorded for insurance carriers.
Construction edged up 0.1%, as both non-residential building construction and engineering and repair work advanced. Residential construction was unchanged, as drops in single dwellings and renovations were offset by increases in other types of dwellings.
Following six consecutive monthly increases, the output of real estate agents and brokers decreased, reflecting a reduction in sales of existing homes in all provinces except British Columbia.
Mining, oil and gas extraction was unchanged in February. Advances in mining (+0.9%) and in support activities (+2.1%) were offset by a 0.4% decline in oil and gas extraction.
Increases in the output of copper, nickel, lead and zinc mines led to the gain in mining.
Conventional oil extraction also increased. However, non-conventional oil output declined, partly as a result of production difficulties and maintenance work. Natural gas extraction fell as well.
With the declines in manufacturing and wholesaling activities, truck transportation decreased in February. There was also a reduction in pipeline transportation of natural gas, as both domestic production and exports of that commodity fell.
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