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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