Canada’s economy grows more than expected

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“The Canadian economy appears to be enjoying a strong start to 2024,” Canadian Imperial Bank of Commerce economist Andrew Grantham said in a note.

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The reading was above Statistics Canada’s early estimate and market expectations for a 0.4 per cent gain.

The public sector increased 1.9 per cent in January following two consecutive monthly declines. Education, which grew by six per cent, led the growth as activity rebounded from public-sector-worker strikes in Quebec late last year.

Manufacturing fully recouped December’s decline with a 0.9 per cent rise to start the year. A sudden drop in temperature in mid-January in parts of Canada contributed to increased activity in the utilities sector, which rose by 3.2 per cent — the largest growth rate since January 2022.

But the most surprising news, Grantham said, was the agency’s early estimate that GDP rose 0.4 per cent in February.

The strong January and February numbers mean the first-quarter’s growth is now tracking “well above” the Bank of Canada’s latest forecast, he said.

Statistics Canada said there were 632,100 job vacancies across Canada, down 34,800 or 5.2 per cent from November. The number of employees receiving pay and benefits from their employers, as measured as payroll employment, rose for the first time in retail trade after four consecutive monthly declines.

More to come …

• Email: nkarim@postmedia.com

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