Canadian Real GDP Increased in January 2022, Marking Eighth Consecutive Months of Growth

Statistics Canada (StatsCan) reported today (3-31-22) that real gross domestic product (GDP) increased 0.2% in January, marking the eight consecutive month of growth. Goods-producing industries increased 0.8% in January, while the effects of the Omicron variant continued to take the wind out of the sails of services-producing industries (0.0%), with specific client-facing industries feeling direct impacts. Overall, 9 of 20 industrial sectors increased in January.

Advance information indicates an approximate 0.8% expansion in real GDP in February. Notable increases were observed in the manufacturing sector as well as in mining, quarrying, and oil and gas extraction, accommodation and food services, and construction. Utilities contracted following strong activity in January, due primarily to cold temperatures. Owing to its preliminary nature, this estimate will be updated on April 30 with the release of the official GDP data for February.

The construction sector expanded 2.8% in January, up for the third time in four months, as all subsectors rose.

Residential building construction grew 4.3% in January, more than offsetting the previous two months of contraction. The growth in January—the largest monthly growth since March 2021—was broad-based, with home alterations and improvements along with apartment-type construction leading the way. Single family home construction was up for the second month in a row in January 2022, following seven monthly pullbacks.

Non-residential building construction was up 0.5%, as all types of non-residential building construction grew, while engineering and other construction activities (+2.4%) and repair construction (+2.4%) further contributed to the growth.