MNI DATA IMPACT: Canada GDP Tops Expectations Despite Oil Drag>

- GDP Excluding Energy +0.4%, Largest Gain Since November 2017

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the January 

data on the Canadian GDP by industry released Friday by Statistics 

Canada: 

     - January GDP rebounded 0.3%, the largest gain since May 2018, 

fully offsetting declines of 0.1% in both December and November. 

     - The rebound topped market expectations of a 0.1% increase despite 

the expected contraction in oil production due to mandatory cuts in 

Alberta that were implemented to counter lower oil prices. In fact, if 

not for a 0.6% drop in energy, GDP would have increased 0.4%, the 

largest expansion since November 2017. 

     - Details of the report were strong, as gains were widespread 

across 18 of 20 industrial sectors. Goods-producing sectors were up 

0.6%, the largest advance since February 2018, following a 0.8% drop in 

December. Services continued to expand at a steady pace of 0.2%. 

     - Goods output was led by construction and manufacturing. 

Construction rose 1.9%, the largest expansion since July 2013. 

Manufacturing was up 1.5%, the largest increase since November 2017, 

more than offsetting the 0.8% drop in December. Non-durables rose 1.9% 

and durables 1.2%. GDP excluding manufacturing increased 0.2%. 

     - Mining, quarrying, and oil and gas extraction (-3.1%, the largest 

drop since May 2016), and accommodation and food services (-0.5%) were 

the only two sectors to post decreases. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

[TOPICS: M$C$$$,MACDS$]