OTTAWA, April 29 (Reuters) - The Canadian economy stalled in
February after a strong start to the year, as activity in the
manufacturing and natural resource sectors declined, data from
Statistics Canada showed on Friday, suggesting that low oil
prices continue to impede growth.
Gross domestic product fell 0.1 percent in the month, as
expected, after increasing for four months in a row. While
economists had expected to see some give-back from January's
unrevised 0.6 percent gain, they still expect relatively strong
growth for the first quarter overall.
The persistent impact of cheap oil was reflected by
February's 0.8 percent drop in the mining, quarrying and oil and
gas extraction sector. Support activities for the industry
retreated, while extraction of non-conventional oil dropped.
Activity in the manufacturing sector also pulled back after
three strong months. Overall, activity in goods producing
industries dropped by 0.6 percent.
While growth in services was flat, the retail sector was a
bright spot, up 1.4 percent. But wholesale trade tumbled 1.8
percent, potentially foreboding weak business investment, as
wholesalers sold less machinery, equipment and supplies.
The plunge in oil prices since mid-2014 put Canada in a mild
recession last year, forcing the central bank to cut interest
rates twice.
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Graphic - Canada monthly GDP, exports to the U.S. http://link.reuters.com/jev87s
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
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