29 April 2011 22:30 [Source: ICIS news]
The decline came after 0.5% and 1.2% increases in GDP and industrial production, respectively, in January from December.
“Although the reduction [in manufacturing] was broadly based in both durable and non-durable goods, manufacturers of motor vehicles and associated parts (-7.5%), machinery (-3.3%) and fabricated metal products (-2.7%) recorded the largest decreases,” the agency said.
Compared with February 2010, GDP was up 2.9% and industrial production rose 5.0%.
Derek Holt, vice president for economics at Toronto-based Scotia Capital, said the sequential decline from January “is a bit of a disappointment".
However, Holt said the comparison with January, when GDP grew 0.5%, is “distorted".
January’s growth was unusually high in that month because GDP bounced back from weak performances in November and December, when many plants cut production as a result of harsh weather and other factors, Holt said.
“Now, we have come back to reality,” he added.
Prime Minister Stephen Harper’s minority Conservative government has based its campaign for re-election largely on its management of the economy during and after the global financial crisis, which affected
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