Canada’s economy stalls in March
UNSPLASH PHOTO
Canada’s economy stalled in March, according to preliminary data released by Statistics Canada on Tuesday, putting an end to two consecutive months of gains and reinforcing expectations that the economy is losing momentum.
The flat reading last month followed a gain of 0.2 per cent growth in February and 0.5 per cent in January, StatsCan reported Tuesday.
For all of the first quarter, the economy is tracking annualized growth of 2.5 per cent – slightly below what the Bank of Canada had been projecting. The central bank anticipates annualized growth of 1.5 per cent between April and June.
The data is consistent with the Bank of Canada starting to cut interest rates as early as June. Still, the relatively robust economic picture suggests little urgency for any dramatic moves on rates. Inflation is still running at 2.9 per cent, above the central bank’s two per cent target.
The statistics agency provided more details on the economy for February showing services producing industries - especially transportation and warehousing - leading the economic expansion for the second consecutive month. Growth within goods-producing industries was essentially unchanged.
