Manufacturing drives February GDP rise

The value of goods and services produced in Canada in February rose 0.3 per cent over the previous month, Statistics Canada said Friday.

The increase in the gross domestic product was mainly driven by manufacturing.

Manufacturing output was up 1.2 per cent in the month, as 14 of 21 major groups increased. This gain represented half of the overall GDP increase.

All goods production, which includes agriculture, fishing, forestry, mining, utilities, construction and manufacturing, rose 0.7 per cent.

However, service industries, which account for about two-thirds of the total GDP, rose just 0.1 per cent.

Compared with February 2009, GDP was up 1.8 per cent. Goods-producing industries were down 0.1 per cent year-over-year, while services were up  2.6 per cent.

Performing arts and spectator sports, hotels and radio and television broadcasting benefitted from the Vancouver Olympics, Statistics Canada said.

U.S. annualized rate up 3.2%

In the United States, first-quarter GDP rose at an annual rate of 3.2 per cent, the Commerce Department said.

If the Canadian GDP increased at the February rate for all of 2010, the annualized rise would be 3.6 per cent.

Economists polled by Thomson Reuters had predicted that the U.S. first-quarter figure would be up 3.4 per cent.