Manufacturing production flat despite certain bright spots in February results
Ottawa, ON -- Canada's gross domestic product (GDP) remained unchanged in February 2004 after a decline of 0.2% in...
Ottawa, ON — Canada’s gross domestic product (GDP) remained unchanged in February 2004 after a decline of 0.2% in January, reports Statistics Canada. Increased retail and real estate activity largely offset weaker utilities, wholesaling, and transportation services.
Canadian industrial production declined 0.3% as utilities output returned to more normal levels. Industrial production in the U.S. showed a similar decline, also driven by lower output of utilities. Manufacturing output grew marginally, while mining gained ground.
Manufacturing production stayed virtually unchanged in February, increasing 0.1%. Strong increases were registered in fabricated metal products and machinery, mainly for aerospace production. Robust U.S. demand for these items pushed up exports of metal fabricated products and machinery. This growth was almost entirely offset by a sharp decline in tobacco products, caused by upcoming closures and already high inventory levels. Clothing manufacturers experienced difficulties in February, as both domestic and international demand were weak.
The output of the wholesale sector dropped 0.4%, partly because of a contraction in automotive wholesaling. Computer and grain dealers also experienced lower sales in February. This weakness was partly offset by machinery and lumber components that regained some strength after a sluggish January.