Canadian Plastics

Canadian GDP falls in February on heels of manufacturing, mining declines

The Canadian economy unexpectedly shrank in February due to a slowdown in the manufacturing and mining sectors, Statistics Canada said.

April 29, 2012   Canadian Plastics

The Canadian economy unexpectedly shrank in February due to a slowdown in the manufacturing and mining sectors, Statistics Canada said.

StatsCan reported on April 30 that the national gross domestic product declined by 0.2 per cent from January, caused by temporary closures in mining and other goods-producing industries.

Economists had been expecting growth of 0.2 per cent.

Manufacturing declined 1.2 per cent in February after increasing for five consecutive months. Non-durable goods manufacturing dropped 1.4 per cent with reduced output of food, chemical and plastic and rubber products, StatsCan said.

Durable goods production fell 0.9 per cent as lower output in transportation equipment and primary metal manufacturing more than offset increases in non-metallic mineral products and machinery manufacturing.

Also, new car dealers, who experienced a sales increase in January, saw sales slip last month. Excluding new car dealers, retail trade edged down 0.1 per cent with lower sales at food and beverage stores, health and personal care stores as well as electronics and appliance stores.

Other sectors reported better news, according to StatsCan. Construction rose 0.5 per cent in February with increases in residential and non-residential building. In service industries, gains in wholesale trade and in the finance and insurance sector outweighed declines in retail trade and in the transportation and warehousing sector.

Still others held steady. The public sector, education, health and public administration combined, was unchanged in February, the agency said, as gains in health services were offset by decreases in education services and public administration.


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