Energy, construction, forestry give economy slight boost

OTTAWA — Economic activity edged up ever so slightly by 0.1 percent in January after growing 0.4 percent in December.

GDP growth occurred in both the goods and services industries. The energy sector recorded a robust gain as a result of strong natural gas production and a rebound in oil and gas exploration, while construction and forestry also posted increases enough to offset the declines in manufacturing and retail trade, according to Stats Canada.

Natural gas production grew sharply as a result of higher demand, particularly from the U.S. Oil and gas exploration rebounded (+11%).
Output in the mining sector, excluding oil and natural gas, eased back 0.1 percent. The decrease in metal mines was partly offset by the 2.4 percent gain made in the non-metallic mineral mines.

Manufacturing, however, continues to drag down GDP. Output fell 1.0 percent in January. Motor vehicles and parts production (down 12%) accounted for much of the decline. Overall, though, non-durable goods manufacturing edged up 0.4 percent, while durable goods retreated 1.9 percent.

The construction sector rose for the eighth consecutive month in January (+0.5%) on the strength of increases in non-residential construction (+0.7%) and engineering (+0.9%), which neutralized the 0.3 percent decline in residential construction.