Prior was +0.1% Canada’s economy expanded 0.2% in February, matching expectations and extending the goods-side rebound that has now driven growth for two consecutive months.
Prior was +0.1% Canada’s economy expanded 0.2% in February, matching expectations and extending the goods-side rebound that has now driven growth for two consecutive months. The headline masks a more interesting story underneath: manufacturing roared back to life with its biggest monthly gain since January 2023.
Manufacturing jumped 1.8% in February, with durable goods leading the charge at +3.6%. The standout was machinery manufacturing, up a chunky 8.7% on strength in industrial and metalworking machinery, with higher exports doing the heavy lifting. Transportation equipment manufacturing rebounded 5.5% after January’s 7.0% drop, as Ontario auto plants came back online following model-change and retooling shutdowns.
Motor vehicle manufacturing alone surged 20.4%, riding the wave of higher US production demand. The auto story carried through to wholesale trade, which rose 0.9% as motor vehicle and parts wholesalers gained 6.1%. Transportation and warehousing tacked on 1.2%, with truck transportation logging its largest gain since March 2021 — a clean read on goods movement broadening out beyond just autos.