An economic slowdown in February has economists using the R word again – recession.
The end of the month is when we get the update on economic output or GDP.
Canada’s GDP fell in February – down two-tenths of a percentage point which takes back half of the gains we saw in January when buyers were increasing their orders and sellers were generating more product before the tariffs kicked in.
The biggest declines were in resource extraction, partly from falling prices but also as volumes declined with buyers worrying about a tariff-induced economic slowdown. The one bright spot in this category was potash which posted a healthy gain in February.
StatsCan says there was a noticeable decline in activity in the offices of realtors and lawyers who serve them in February as housing sales fell off sharply in the high-priced cities such as Vancouver and Toronto. Sales in Saskatchewan, by contrast, remained strong.
Economists are suggesting Q1 will be the high-water mark for the year with a slowdown expected through the remainder of the year as the US economy cools because of trade wars.
