Canadian Economy Contracts In February

Statistics Canada says Canadian economy slipped 0.1 percent in February, but was much less sever than the 0.7 percent slide in January and better than the 0.2 percent expected.

OTTAWA (CP) -- Statistics Canada says the Canadian economy continued to contract in February, slipping 0.1 per cent.

That was much less severe than the 0.7 percent slide recorded in January and a better showing than the 0.2 percent contraction that economists had expected.

Still, the agency noted that economic activity has declined by 2.4 percent since October of last year.

It said that a 19 percent rise in motor vehicle and associated parts manufacturing in February was not enough to outweigh declines in construction and in mining activities, excluding oil and gas.

Wholesale and retail trade and several major groups of the manufacturing sector also declined.

Statistics Canada said there was a significant increase in motor vehicle manufacturing as the output of the manufacturing sector edged up 0.1 percent in February.

Excluding motor vehicle and parts production, the manufacturing sector dropped 0.8 percent.

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