GDP jumps in January as ‘the hits just keep on coming’

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The Canadian economy is maintaining its recent winning streaking, expanding 0.6% in January for its seventh gain in eight months.

Manufacturing (+1.9%), wholesale trade (+2.4%), and retail (+1.5%) all worked to kick-start the year with notable growth, according to data released Friday (March 31) from Statistics Canada.

“The hits just keep on coming,” TD Economics senior economist Brian DePratto wrote in a note to investors.

“Although it is still early days and risks abound, signs are pointing to an economy that looks increasingly poised to shake off the setbacks of recent years.”

DePratto originally expected 2017’s first-quarter growth to match that of Q4 2016’s 2.6% growth.

Based on the latest data, he’s revised the projection to 3.4% growth, “putting Canada on track for the strongest yearly start since 2013.”

Mining, quarrying, and oil and gas extraction (+1.9%) and the construction sector (+0.4%) also posted notable gains.

The utilities sector shrank 1.3% in January, while agriculture, forestry, fishing and hunting contracted by 0.9%.