Canadian Real GDP Inches Higher in February

Statistics Canada (StatCan) reported Friday (4-28-23) that real gross domestic product (GDP) inched 0.1% higher in February, following a 0.6% increase in January. Both service-producing and goods-producing industries edged up 0.1%. Overall, 12 of 20 subsectors reported increases.

Specifically looking at the construction sector’s impact on GDP, StatCan is reporting the sector experienced 0.3% growth in February, as all subsectors were up for a second month in row.

Residential building construction posted a 0.3% increase and was the top contributor to the growth in the month, posting its second consecutive increase to start the year after declining for the last five months of 2022. Home alterations and improvements—a large contributor to the downward trend in residential building construction activity in 2022—drove the gains in January and February.

Engineering and other construction activities also expanded 0.3% in February and continued the upward trend that began at the conclusion of 2020. Non-residential building construction posted a 0.4% increase in February, marking the third consecutive monthly increase, driven by gains in both new building construction and alterations and improvements.

StatCan reports that advance information indicates real GDP edged 0.1% lower in March. Decreases in retail and wholesale trade sectors, as well as in the mining and quarrying (except oil and gas) subsector, were partially offset by increases in the public sector; professional, scientific, and technical services; and administrative and support, waste management, and remediation services. This advance information indicates a 0.6% increase in real GDP by industry in Q1. Due to its preliminary nature, these estimates will be updated on May 31st with the release of the official GDP data for March and Q1.