Canada’s economy grew 0.7% in January

Statistics Canada says the economy grew 0.7 per cent in January.

The increase in real gross domestic product compared with a gain of 0.1 per cent in December.

The growth also topped the agency’s preliminary estimate for the month of 0.5 per cent.

It was the ninth consecutive monthly increase since the plunge in the economy last year at the start of the pandemic in March and April.

However, Statistics Canada noted that total economic activity was still about three per cent below the February level last year, before the pandemic began.

The agency’s preliminary estimate for February this year shows growth of 0.5 per cent for the month.

For January, retail, construction and real estate all contributed to economic growth.

The manufacturing sector expanded 1.9 per cent in January, offsetting a 0.7 per cent contraction in December.