Tuesday, May 3, 2005

Economic output jumps

THE CANADIAN economy rose 0.3% in February, largely the result of higher consumer spending in retail stores and continued strong demand for machinery and equipment at home and abroad.

The gain follows on the heels of a 0.2% in January.

Retailing activity increased 1.7% after a 2.3% jump in January. Output was particularly strong among new and used car dealerships as strong incentive programs by some carmakers helped propel new car sales.

On the other hand, industrial production, which covers the output of factories, mines and utilities, slumped 0.2%. A gain in manufacturing output was overshadowed by declines in the mining, oil and gas extraction sector and in utilities.

In contrast, in the United States, the index of industrial production rose by 0.2%. Gains in the manufacturing and mining sectors were offset by reduced output among utilities.

Elsewhere in Canada, the end of a strike in Quebec’s liquor stores as well as stronger sales in most other provinces caused a sizeable jump in the beer, wine and liquor stores industry.

Wholesaling activity

Wholesaling activity rebounded 1.4% after a 0.2% drop in January. Wholesalers of food and beverage products recorded the largest increase in activity.

Construction activity edged down 0.1%. Residential building declined for a third month in a row as the output of both single detached dwellings and apartment units fell.

Sales of existing homes increased in February, raising the output of real estate agents and brokers by 1.8%.

For more information, contact Bernard Lefrançois (613-951-3622), Industry Measures and Analysis Division.

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© 2004, 2005 Statistics Canada.