Canada: Soft February GDP report - RBC

Josh Nye, senior economist at the Royal Bank of Canada, notes that the Canadian GDP edged down 0.1% in February, just short of expectations for no change following a solid 0.3% gain in January.

Key Quotes

“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.”