GDP nudged upward by 0.2% in January

OTTAWA (March 31) — Strength in demand at home and from the United States lifted gross domestic product (GDP) by 0.2% in January. It was the sixth consecutive month of positive growth after a largely strike-induced period of weakness in mid-1998.

January’s advance, unlike the five previous increases, was not bolstered in any significant way by strike recoveries, Statistics Canada reported.

However, output of transportation and storage services fell 0.5% in January due to a decline in activity at trucking firms and at grain elevators, the latter being partly attributable to a strike by federal grain handlers.

Overall factory output rose 0.3% in January, the smallest of six consecutive increases following a summer marred by strikes in the automotive sector. Higher output of electronic, wood, and transportation products more than offset declines in the machinery, primary metal, and pulp and newsprint product industries, the agency said. Twelve of 22 major industry groups, accounting for almost 60% of total manufacturing production, increased production.

After months of stagnant sales, retailing activity surged 1.6% in January. However, wholesalers reported a drop in activity, the first in a year, while the mining industry, battered by weak commodity prices, lost ground after two months of modest gains.

The gross domestic product of an industry is the value added by labor and capital in transforming inputs purchased from other producers into outputs. The estimates presented here are seasonally adjusted at annual rates, and are valued at 1992 prices.