Canadian GDP rises in January: Statistics Canada

Real gross domestic product (GDP) grew 0.6% in January. Services-producing industries increased 0.7% in January, led by a rebound in educational services following the resolution of the public sector strikes in Quebec in November and December. Goods-producing industries were up 0.2% in January 2024 with the utilities and manufacturing sectors rebounding from declines in the previous month. Overall, there was broad-based growth with 18 of 20 sectors increasing in January, reported Statistics Canada on Thursday.

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“Durable goods manufacturing (+0.9%) contributed the most to the increase in January and was largely a result of an increase in the transportation equipment manufacturing subsector (+3.0%). Following four consecutive monthly declines, the motor vehicle manufacturing industry increased 4.9% in January, as production resumed at some auto assembly plants following retooling-induced partial shutdowns in the previous months. Motor vehicle parts (+3.5%) rebounded as well in January, following a 3.7% drop in December. Non-durable goods manufacturing increased 1.0% in January as five of nine subsectors expanded,” said the federal agency.

“Following three consecutive monthly increases, the mining, quarrying and oil and gas extraction sector declined 1.9% in January, as two of three subsectors contracted. Oil and gas extraction dropped 4.4% in January, after reaching a record high level the month prior. Production declined as frigid temperatures impacted the Prairies during parts of January. Oil sands extraction decreased 5.2% in January, the largest monthly contraction since August 2020 (-7.7%), as production of synthetic crude along with crude bitumen extraction in Alberta dropped in January 2024. Oil and gas extraction (except oil sands) contracted 3.6% in January, as lower crude oil extraction in Alberta along with lower production coming from Canada’s North Atlantic coast contributed to the decline.

“Pipeline transportation decreased 1.8% in January, its largest contraction since May 2023. Crude oil and other pipeline transportation was down 4.4% in January 2024 as exports to the United States contracted in the month. Pipeline transportation of natural gas was up 0.8%, despite a decrease in storage and exports. Natural gas distribution, particularly to residential consumers, rose in January, as increased demand for heating purposes in parts of the country contributed to the increase. Mining and quarrying (except oil and gas) declined 0.7% in January after three consecutive months of growth. Coal mining (-14.4%) contributed the most to the decline, with its largest monthly contraction since March 2022. Declines in January 2024 were largely concentrated in mines located in Nova Scotia and Alberta due to factors such as reclamation and a shift from coal to natural gas as input to an electricity generation plant.”

Mario Toneguzzi