🇨🇦Cable FX Macro Weekly Note: Canada January GDP Growth Rate

**As seen in Risk In The Week report 03/24/23, subscribe at cablefxm.co.uk/reports

Canadian economy contracted by 0.1% in December after having posted a rise of 0.1%, the figure came in worse than the Bloomberg survey median of 0.0%. On a yearly basis, output rose by 2.3% vs the consensus of 2.7%, this left the last quarter at zero growth. The largest downside contribution was seen in mining, oil & gas as the sector fell 4.0% on the month and 0.3% on the year. Industrial production fell by 1.0% M/m, the energy sector declined by 2.3%, manufacturing posted a mild rise. Statcan released the flash figure for January growth, the preliminary metric sees output rising by 0.3% M/m. The desk at RBC says that oil production likely edged lower in January, following prior declines in the energy sector. They note manufacturing and retail sales surging higher on the month, RBC says growth is likely to show a continued rise into February given the strong labour report. However, analysts say there is a delayed impact from the BoC interest rate hikes on the economy, and warned that this will cut Canadian household purchasing power and spending in the months ahead. RBC pencils a 0.3% M/m rise in January GDP.