Canada's gross domestic product declined by 0.7 per cent in January, which marked the third straight monthly decline, Statistics Canada reported on Tuesday.
The January drop comes after a decrease of one per cent in December and 0.7 per cent in November.
The major contributors to the decline include a drop in activity in the manufacturing, wholesale, construction, finance and insurance industries, the report said.
Activity in the manufacturing sector decreased for the sixth straight month in January, by 3.1 per cent. While 18 of 21 manufacturing groups posted declines, about half of the decline was attributable to a 27 per cent drop in the production of cars and car parts, the report said.
Other contributors to the decline include:
- A 3.4 per cent decrease in wholesale activity.
- A 3 per cent decline in construction, including a 6.4 per cent drop in the building of new homes.
- A 0.7 per cent drop in the finance and insurance industries, attributable to a slow down at banks, stock brokerages and mutual fund companies.
BNN's Michael Kane told Â鶹´«Ã½net on Tuesday that the decline in GDP may not "sound like very much, but to economists it really is. It reinforces that the economy is slowing at a quickening pace."
On a positive note, the report indicated that retail trade and oil-and-gas extraction posted modest increases in January.
Excluding new car sales, retail trade increased by 0.5 per cent, the report said. Sales at supermarkets and beer and liquor stores fuelled the increase. However, the gains were offset somewhat by a decrease in activity at gas stations and hardware stores.
