Canadian economy likely stalled in February

The Canadian economic growth boosted in the beginning of 2016, expanding at the most rapid pace since July 2013. However, the economy is expected to have stalled in February, according to TD Economics. Real industry level GDP is likely to have remained same as in the previous month. February’s data has come in mixed. Manufacturing volumes rebounded sharply, while retail sector and existing home sales recorded a strong growth.

Therefore, services sector industries are expected to mainly drive the economic growth, whereas goods producing industries are likely to cut back, noted TD Economics.

Meanwhile, manufacturing is likely to be weak in February, after posting strong growth in January. Commodities are expected to have recoiled slightly, indicated by low railcar shipments. Given the strong 1.5% m/m growth in retail sales volume, retail trade is expected to expand strongly, added TD Economics.