The economy grew 0.2% in February, driven by goods-producing industries, while several service sectors and the public sector declined.
Manufacturing led the increase, up 1.8%, the strongest gain since early 2023. Durable goods rose 3.6%. Machinery manufacturing jumped 8.7%, and transportation equipment increased 5.5% after a sharp drop in January.
Auto production accounted for much of the rebound. Motor vehicles and parts rose 9.8% as Ontario assembly plants resumed operations following model changes and maintenance shutdowns. Higher output also supported exports.
Wholesale trade rose 0.9%, with motor vehicle and parts wholesalers up 6.1%. Transportation and warehousing increased 1.2%. Truck transportation posted its largest gain since 2021, reflecting stronger freight activity and cross-border shipments.
Mining, quarrying and oil and gas extraction rose 0.4% for a second straight month. Conventional oil and gas output increased, while oil sands production fell 1.7% due to maintenance in Alberta.
Services growth was limited to 0.1%. Gains in transportation, wholesale and finance were offset by declines elsewhere.
The public sector fell 0.3%, with decreases across public administration and education. Educational services dropped 0.5%, the first decline in four months.
Arts, entertainment and recreation fell 2.5%, led by lower activity in spectator sports during a temporary break in the NHL schedule tied to the Winter Olympics.
Early data for March shows little change in overall output. Gains in transportation and wholesale trade were offset by declines in retail and resource sectors.
Including the March estimate, the economy grew 0.4% in the first quarter, with most of the increase concentrated in February.