Retail trade was the largest detractor to real domestic product (GDP) growth in January, after being the largest contributor to growth in December, contracting 0.9% in January as activity in six of 12 subsectors decreased, reported Statistics Canada on Friday.
“Motor vehicle and parts dealers (-3.2%), which was one of the largest drivers of growth in December, contributed the most to the sector’s decline in January. It was the subsector’s first decline in four months with lower activity at new car dealers and automotive parts, accessories and tire stores,” said the federal agency.
“Food and beverage stores declined 2.6% in January, reflecting lower activity in supermarkets and other grocery retailers (except convenience retailers) and beer, wine and liquor stores. Sporting goods, hobby, book and music stores (-9.6%) further contributed to the decline, offsetting part of the increase recorded in the previous month. Increases in health and personal care stores (+1.3%) and building material and garden equipment and supplies dealers (+1.6%) tempered the decline in the sector in January.”
Wholesale trade increased 0.7% in January, as most subsectors grew. Motor vehicle and parts wholesaler-distributors (+4.5%) was the main contributor to growth in the sector, reaching its highest level since February 2020, mainly attributable to higher activity in motor vehicles and new motor vehicle parts coinciding with a strong increase in exports of passenger cars and light trucks, added Statistics Canada.
Building material and supplies wholesaler-distributors (+1.8%) further contributed to growth in January, in large part driven by a rebound of activity in the lumber, millwork, hardware and other building supplies industry group, it said.
The federal agency said GDP grew 0.4% in January, following a 0.3% increase in December. Both goods-producing and services-producing industries were up, with 13 of 20 sectors rising in January.
“Goods-producing industries contributed the most to the increase, rising 1.1% in January, the largest increase since October 2021, as all industrial sectors in the aggregate expanded in January 2025. The mining, quarrying, and oil and gas extraction and manufacturing sectors were the largest contributors to growth. Services-producing industries edged up 0.1%,” it said.
Advance information indicates that real GDP by industry was essentially unchanged in February. Increases in the manufacturing and finance and insurance sectors were offset by decreases in the real estate and rental and leasing sector, the oil and gas extraction subsector and the retail trade sector, added StatsCan.
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