Real gross domestic product grew 3.3 per cent in January, says Statistics Canada.
The January growth followed a 0.1 per cent fall for November and December, and was driven primarily by growth in manufacturing and construction. The growth offset weakness in the resources sector, reports CTV News.
It was the strongest gain for the economy in 14 months. Economists had expected growth in January to be 0.1 per cent.
Eighteen out of 20 industrial sectors showed positive growth in Statistics Canada’s report, which was issued last Friday. Construction grew by 1.9 per cent, manufacturing by 1.5 per cent and goods producing industries by 0.6 per cent. Services industries grew by 0.2 per cent. Even the four per cent slump in oil sands output wasn’t enough to offset the strong numbers.
The Bank of Canada held its key interest rate steady this month, and the January results decreased the likelihood of a rate cut in the near term, although the Bank has warned that it expects the economy to show signs of weakness in the coming months.
One possible foretaste of slowing conditions in Friday’s report was the 3.1 per cent shrinkage in the mining, quarrying and gas extraction industry.