Canadian economy outperforms with 0.5% growth in January

OTTAWA (Reuters) – The Canadian economy performed better than expected in January versus December, driven by broad gains in both goods and services industries, Statistics Canada data showed on Friday.

The economy grew by 0.5% in January, ahead of analysts forecasts of a 0.3% rise after a 0.1% contraction in December. February GDP was most likely up 0.3%, the agency said in a flash estimate.

Industries including wholesale trade and mining, quarrying and oil and gas extraction rebounded in January from declines recorded in the previous month, Statscan said.

The service-producing sector grew by 0.6%, while goods-producing industries posted a 0.4% increase in January, the agency said.

In a preliminary estimate for February, Statscan said industries including mining, quarrying, and oil and gas extraction and manufacturing likely recorded gains and helped offset decreases in construction and wholesale trade.

The Canadian dollar was trading at 1.3542 to the U.S. dollar, or 73.78 U.S. cents.

(Reporting by Ismail Shakil and Dale Smith in Ottawa)