Economy shrunk 0.2% in February, StatCan estimates 1.5% annualized growth for Q1

Statistics Canada says the Canadian economy contracted in February but early signs suggest moderate growth in March.

The agency says real gross domestic product decreased 0.2 per cent in February.

That was driven by a 0.6 per cent decline for goods-producing industries, with mining, quarrying, and oil and gas extraction and construction contributing the most to the decrease.

Services-producing industries edged 0.1 per cent lower in February as contractions in transportation and warehousing, along with real estate, rental and leasing, were partially offset by a rise in finance and insurance.

StatCan's early estimates indicate real GDP increased 0.1 per cent in March amid gains in mining, quarrying, and oil and gas extraction, retail trade and transportation and warehousing.

The agency says the annualized growth rate for the first quarter based on the March flash estimate is 1.5 per cent.