Economy tops expectations, growing faster than expected in January
OTTAWA — The economy kicked off the year with a bang, rising faster than expected in January, providing further evidence of robust growth but not enough to alter expectations that the central bank will maintain its dovish position.
Statistics Canada said Friday gross domestic product increased 0.6 per cent in the first month of the year, with strength across both goods- and service-producing industries. Economists had expected a gain of 0.3 per cent, according to Thomson Reuters.
“One month does not a year make, but Canada opened its 150th birthday celebration with January alone registering a quarter of the gains expected for the year as a whole,” CIBC chief economist Avery Shenfeld wrote.
“Even for those of us with enough experience to downplay any one data point, the fact that GDP is up 2.3 per cent from a year ago, and is gaining leadership from the ‘right’ sectors, makes a compelling case that we’ve put the post-oil-dive blues behind us.”