Ottawa Business Journal

Canada's seasonally adjusted gross domestic product grew 0.4 per cent in February as the energy sector quieted down and production in both goods and services increased.

The gross domestic product grew to just a little more than $1.1 trillion, a year-over-year increase of 2.1 per cent.

Excluding oil and gas extraction and utilities, the Canadian economy saw a month-over-month increase of 0.2 per cent, as wholesale trade, manufacturing and financial services all posted gains.

However, these gains were offset slightly by declines in construction, retail trade, rail transportation, and accommodation and food services.

The energy sector posted its second consecutive monthly gain, rising 2.9 per cent to $65.3 billion as colder temperatures pushed up demand, following two months of sluggish activity because of mild weather conditions, said the Statistics Canada report.

The wholesale trade industry also saw a healthy gain of one per cent to $71.8 billion, as trade rose in computers and other electronic equipment, household and personal products, pharmaceuticals and petroleum products.

Retail trade, on the other hand, fell 0.7 per cent to $66.3 billion in February as new car sales weakened. Excluding new motor vehicle dealers, retailers saw a 0.1-per-cent increase in trade.

Meanwhile, the manufacturing sector showed signs of life as 10 out of the 21 major manufacturing groups saw gains, pushing the total monthly increase in the sector to 0.3 per cent and the gross domestic product in the industry to $170.4 billion.

Motor vehicle manufacturing increased 4.9 per cent, while parts production gained 2.6 per cent. The textile and clothing, machinery, plastic and primary metal products manufacturing sectors all posted gains, offsetting declines in chemical, fabricated metal, food, beverage and tobacco products manufacturing.

Excluding motor vehicle and parts production, the sector saw an overall decrease of 0.2 per cent.

Meanwhile, the construction sector saw its first decline in eight months in February, falling 0.2 per cent to $70.2 billion. The dip was mostly due to the 1.4-per-cent drop in residential construction activity for single-family homes and apartments, although it was partially offset by a one-per-cent gain in non-residential building construction and a 0.2-per-cent increase in engineering and repair work.

The report also pointed to the February strike by CN Rail workers as a factor for the 5.4-per-cent drop in the output of the rail transporation industry, leading to a decline in the export industry.