February GDP Stable Following January Decline

GDP

 

Real gross domestic product (GDP) was unchanged in February following a 0.2% decline in January. An increase in the output of service industries, primarily retail trade, was offset by an overall decline in goods-producing industries.

Real GDP growth was revised down to a 0.2% decline in January 2015 and revised up to a 0.4% increase in December 2014. Revisions to January and December result from the incorporation of updated information on Canadian industries.

The output of service-providing industries edged up 0.1% in February, after declining 0.2% in January. Increases were recorded in retail trade and the finance and insurance sector as well as the public sector (education, health and public administration combined). On the other hand, wholesale trade, transportation and warehousing services as well as accommodation and food services posted declines.

Goods production declined 0.2% in February, after edging down 0.1% in January, primarily as a result of declines in manufacturing and mining, quarrying and oil and gas extraction. Construction also declined in February. In contrast, utilities and the agriculture and forestry sector were up.

Chart 1: Real gross domestic product is unchanged in February 

Economy Chart 1

Retail trade rises while wholesale trade falls

After declining for two consecutive months, retail trade rose 1.5% in February as most subsectors posted growth. There were notable increases at 

• general merchandise stores

• food and beverage stores

• sporting goods and hobby, book and music stores

• motor vehicles and parts dealers

Activity was down at gasoline stations and building material and garden equipment and supplies dealers.

Chart 2: Retail trade rises in February

Economy Chart 2

Manufacturing output decreases

Manufacturing output declined 0.8% in February after decreasing 0.7% in January.

Following a 1.5% decline in January, durable-goods manufacturing fell 2.5% in February. There were notable declines in the manufacturing of transportation equipment as well as of primary metals, non-metallic mineral products, and fabricated metal products. In contrast, miscellaneous manufacturing was up.

Non-durable goods manufacturing rose 1.4% in February, mainly as a result of a notable increase in the manufacturing of chemical products and, to a lesser extent, of food.

Mining, quarrying, and oil and gas extraction falls

Mining, quarrying, and oil and gas extraction fell 0.6% in February, mainly because of a contraction in support activities.

Support activities for mining and oil and gas extraction contracted 15.4% in February, after falling 10.8% in January, as rigging and drilling services retreated. Crude oil prices, while up in February from January, have been significantly lower in recent months compared with their mid-year 2014 levels. Natural gas prices were down again in February, their sixth decline in seven months.

After rising 1.4% in January, oil and gas extraction edged up 0.1% in February, primarily as a result of gains in non-conventional oil extraction. The growth was pulled down by a decline in conventional crude petroleum extraction, while natural gas production was up.

Mining and quarrying (excluding oil and gas extraction) increased 3.0% in February. An increase in metallic mineral mining outweighed a decline in non-metallic mineral and coal mining.

Finance and insurance sector grows

The finance and insurance sector grew 0.7%, a third consecutive monthly increase. Financial investment, banking, and insurance services all posted gains.

Construction declines

Construction declined 0.2% in February. Residential and non-residential building construction fell, while repair construction was up. Engineering construction was unchanged.

After falling for five consecutive months, the output of real estate agents and brokers rose 3.3% in February, as activity increased in the home resale market, mainly in British Columbia and Ontario.

Other industries

Utilities grew 2.3% in February, after increasing 1.7% in January. Electricity generation, transmission and distribution as well as natural gas distribution were up, partly a result of colder than usual temperatures in some parts of the country.

The public sector (education, health and public administration combined) increased 0.2%.

The agriculture and forestry sector was up 1.1% in February. Growth in crop production and the forestry sector outweighed a decline in animal production.

Chart 3: Main industrial sectors’ contribution to the percent change in gross domestic product, February 2015

Economy Chart 3

Source: Statistics Canada, http://www.statcan.gc.ca/daily-quotidien/150430/dq150430a-eng.htm.

 

Related Articles


Latest Articles

  • Ontario’s Institutional Component Drives Non-Residential Construction Intentions in May 2025

    Ontario’s Institutional Component Drives Non-Residential Construction Intentions in May 2025

    uly 14, 2025 In May, the total value of building permits issued in Canada rose by $1.4 billion (+12.0%) to reach $13.1 billion. The increase in construction intentions was driven by Ontario’s institutional component (+$1.3 billion). On a constant dollar basis (2023=100), the total value of building permits issued in May increased 11.8% from the previous month and was… Read More…

  • Plan Group Partners in Construction of UHN Surgical Tower at Toronto Western Hospital

    Plan Group Partners in Construction of UHN Surgical Tower at Toronto Western Hospital

    July 14, 2025 Plan Group is proud to be a partner in the construction of the UHN Surgical Tower at Toronto Western Hospital. Plan Group will provide work on the project in: Mechanical: Plumbing, HVAC, Controls, Medical GasElectrical: Lighting & Controls, Power Distribution, Emergency Generators, UPSTechnology: Structured Cabling, AV Systems including Digital Signage and IPTV UHN’s 15-storey Surgical… Read More…

  • How Canada Can Equip Workers for a Low-Carbon Future

    How Canada Can Equip Workers for a Low-Carbon Future

    July 14, 2025 The Canadian economy is shifting towards low-carbon industries, and the workforce is shifting with it. New roles are emerging, traditional ones are evolving and the demand for skilled workers is growing fast — particularly in light of the ambitious nation-building agenda the federal government has set out. In the federal Speech from… Read More…

  • Clarification from ESA on Labour Mobility Updates Between Provinces

    Clarification from ESA on Labour Mobility Updates Between Provinces

    July 14, 2025 Effective July 1st, 2025, ESA implemented changes required under the Bill 2Protect Ontario Through Free Trade within Canada Act, 2025 and the Ontario Labour Mobility Act, introduced by the Government of Ontario. These legislative updates aim to reduce interprovincial barriers and support the mobility of qualified tradespeople across Canada. Out of Province Master Electrician… Read More…


Changing Scene

  • OEL Apprentice Success Project Available Until March 2026

    OEL Apprentice Success Project Available Until March 2026

    July 14, 2025 With renewed funding by Ontario’s Skills Development Fund, the OEL Apprentice Success Project is now available for another year until March 2026. The project is part of OEL’s Employer Engagement Program (EEP) consisting of wage, training, and equipment subsidies for apprentices. These funding opportunities are available to OEL Members and non-Members. For… Read More…

  • EB Horsman Unveils New Mural at Campbell River Branch

    EB Horsman Unveils New Mural at Campbell River Branch

    July 14, 2025 EB Horsman & Son are thrilled to unveil a new mural at their Campbell River branch, painted by the talented Kwakwaka’wakw artist, Adam Lewis. “This stunning piece celebrates Indigenous heritage and our community spirit,” said EB Horsman on LinkedIn. “As we mark 125 years of serving Western Canada and 55 years in… Read More…

  • Glenco Electric Celebrate New Red Seal Team Members

    Glenco Electric Celebrate New Red Seal Team Members

    July 14, 2025 “The Red Seal Journeyman designation is the highest recognition in the trades, and we’re proud to have seen so many of our team members earn it under our watch,” said Glenco Electric on LinkedIn. “At Glenco, we’re big on mentorship and promoting from within. When you combine that with driven, hard-working professionals,… Read More…

  • Canada and Ontario Investing to Improve Energy Efficiency in Province’s Agri-Food Industry

    Canada and Ontario Investing to Improve Energy Efficiency in Province’s Agri-Food Industry

    July 14, 2025 The governments of Canada and Ontario are investing up to $3 million and launching the third intake of the Agricultural Stewardship Initiative (ASI) to help farmers implement projects to improve the energy efficiency of their farming operations. To support the province’s plan to protect Ontario, this funding will help local agriculture, agri-food… Read More…