Canada’s economy continued its strong momentum in the new year, growing by 0.4 per cent in January, up from 0.3 per cent in December, but a flash estimate shows that momentum fading in February, Statistics Canada said Friday.

The monthly growth in gross domestic product in January marks the strongest pace since April 2024, with goods-producing industries like manufacturing, oil and gas extraction and mining posting the largest monthly gains.

However, an early estimate shows momentum faded in February, with Canadian growth coming in flat during the month. Increases in manufacturing, finance and insurance were offset by declines in retail trade, oil and gas and the real estate sector.