A sharp rebound in Canada’s auto sector fueled a 3.6% surge in factory sales in February, while wholesale trade climbed 2.0%, signaling a resilient start to the year for the nation's economy.
"The auto-led rebound keeps the good start to the year that Canada’s economy has seen on track," said Bradley Saunders, North American economist at Capital Economics. "On the whole, today’s data support the advance GDP growth estimate."
Statistics Canada reported that factory shipments reached C$71.19 billion, with transportation equipment sales jumping 18.8%. Wholesale activity recovered to C$86.77 billion, led by a 6.1% increase in the motor vehicle and parts sector as supply-chain issues eased. In volume terms, factory sales rose 3.4% for the month but were 2.7% lower than a year earlier.
While the February data reinforces expectations of a first-quarter economic recovery, the positive signal is tempered by more recent geopolitical events. Escalating Middle East conflict has caused a spike in energy costs, adding to trade uncertainties and complicating the Bank of Canada's upcoming interest rate decision.
This article is for informational purposes only and does not constitute investment advice.
