Canada

Tuesday, April 30, 2019 - 09:20

MNI DATA IMPACT: Feb Canada GDP -0.1%; Goods & Services Down


By Courtney Tower

OTTAWA (MNI) - Canada GDP fell back in February, contracting by -0.1% on declines in both goods and services, Statistics Canada reported Tuesday.

Meanwhile, the Industrial Product Price Index rose 1.3% in March, mainly on higher prices for energy and petroleum products. And the Raw Materials Price Index increased 2.8% in March, mainly because of higher prices for crude energy products.

The GDP decline followed 0.3% growth in January and was led down by a 1.6% decline in mining, quarrying and oil and gas extraction, its sixth consecutive month of decline. Within that sector, the largest impact on its decline was from a 4.4% decrease in mining and quarrying, with nearly all types of mining down due to lower international demand.

Oil and gas extraction was down 0.6%, following a 2.6% decline in January. Both natural gas and crude petroleum extraction fell. Oil sands extraction only declined 0.1% in February, after a 4.1% decline in January, as the provincial Alberta government eased its oil production cuts.

Transportation and warehousing took a 1.6% drop, its largest since June 2011. Cold weather and heavy snowfalls in many parts of Canada were at fault, along with a train derailment in the Rocky Mountains.

Manufacturing declined 0.4%, in both durable and non-durable groups, following growth of 2.1% in January, the largest in "close to 15 years," Statistics Canada said.

Utilities were up 1.5%, the fourth increase in five months, on colder weather.

The finance and insurance sector was down 0.6%, construction up 0.2% and the public sector edged up 0.1%. Retail trade edged up 0.2%, partly offsetting a January decline, and wholesale trade edged up 0.1% with a notable increase of 8.6% for motor vehicles and parts wholesalers, mainly on higher imports of motor vehicles.

The energy sector overall grew 0.6% following a similar gain in January.

--MNI Ottawa Bureau; tel: +1 202-371-2121; email: dcoffice@marketnews.com

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