Industry and Energy Lift Canada’s Economy in February
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Canada’s real gross domestic product grew by 0.2% in February 2026, offering a fresh sign that economic activity is still moving forward at a modest pace despite pressure across several sectors.
Statistics Canada said goods producing industries led the gain for the second consecutive month, rising 0.4% on stronger activity in manufacturing, mining, quarrying, and oil and gas extraction. Services producing industries edged up 0.1%.
Manufacturing was the main driver of February’s growth, rising 1.8%, its strongest monthly increase since January 2023. The gain was supported by machinery manufacturing and transportation equipment, as several auto assembly plants in Ontario ramped up production following shutdowns linked to model changes, retooling, and assembly line maintenance.
Mining, quarrying, and oil and gas extraction grew 0.4%, helped by higher conventional oil and gas activity, including increased crude petroleum extraction in Saskatchewan and Newfoundland and Labrador, along with stronger natural gas extraction. Lower oil sands output in Alberta limited the overall increase.
Wholesale trade rose 0.9% as automotive supply chain conditions improved, while transportation and warehousing increased 1.2%, supported by stronger freight movement and manufacturing related activity.
The public sector weighed on growth, falling 0.3% as public administration, education, health care, and social assistance recorded declines. Arts, entertainment, and recreation also fell 2.5%, partly reflecting lower spectator sports activity during the National Hockey League break for the Milano Cortina 2026 Winter Olympics.
Advance estimates suggest real GDP was essentially unchanged in March. With that preliminary reading, Statistics Canada’s industry based data point to a 0.4% expansion in the first quarter of 2026, while Reuters estimated that pace at roughly 1.7% annualized growth.
The figures give policymakers and markets another important signal ahead of the official March GDP release on May 29, 2026, as Canada continues to watch inflation, interest rates, labour market conditions, and the role of manufacturing and energy in the broader economic outlook.
