Canada’s December 2012 GDP saw a 0.2 percent decline over the prior month. But January made up for that with a 0.2 percent gain, which was higher than the 0.1 percent expected.
The goods producing industries saw a 0.4 percent increase in January, helped by the manufacturing sector which went up by 1.2 percent. Mining also increased by 0.2 percent, considered a moderate gain. The construction sector saw a drop of 0.1 percent.
Service industries also saw an increase of 0.2 percent in GDP. In January the wholesale market went up by 0.7 percent. The entertainment and recreation markets along with related industries got a push from the ending of the National Hockey League strike. That sector saw a 4.1 percent increase. The four months prior all showed a decline. Food services and the hospitality industry also saw an increase of 0.8 percent, no doubt also benefiting from the strike’s end.
January’s numbers helped offset December 2012’s disappointing statistics. They also point to the first quarter GDP of 2013 being in the region of 1.9 percent, the amount previously forecasted. Welcome news yes, but the numbers are still not strong enough to nudge the current unemployment rate. With such a moderate increase, the feeling is that the Bank of Canada will leave the one percent interest rate alone for at least the next 12 months, perhaps longer.