Growth was mainly driven by manufacturing, and to a lesser extent, by transportation and wholesale trade.

Here is the breakdown by sector:

Manufacturing grew 2.80% in January following a 0.80% increase in December. Manufacturers of fabricated metal products and of motor vehicles & associated parts recorded the largest increases. Output at refineries decreased.

Transportation and warehousing increased by 1.20%. Rail transportation increased by 5.00% fueled by higher iron ore output, and truck transportation increased by 1.10%.

Wholesale Trade increased for a 4th consecutive month by 0.70%. Retail trade decreased by 0.10%.

Finance and insurance grew 0.60% due to higher volume of trading on the stock exchanges and increased financial institution transactions (personal and business loans, mortgages & mutual fund sales).

Construction grew by 0.40% with increases in both residential and commercial, and output of real estate agents & brokers increased by 2.60%.

Mining and Oil & Gas Extraction decreased by 0.50%. The decline was due to difficulties affecting synthetic oil production, however natural gas extraction continued to grow.

Economic growth in the positive direction, but not seemingly enough for upward pressure on inflation. Interest rates should remain stable for the time being.

View entire report from StatisticsCanada.

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Even though Canada’s GDP figures came in stronger than anticipated for Q4 of 2010, the Bank of Canada has kept the prime rate at 1.00%.

“While consumption growth remains strong, there are signs that household spending is moving more in line with the growth in household incomes,” the central bank’s statement read.

‘There are no indications here that rate hikes are close.’—Michael Gregory, BMO economist.

View entire article at CBC News.

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