Canada's economy expands 0.6% in January, higher than 0.4% estimates

Canada's real gross domestic product (GDP) grew 0.6% in January, the country's statistical body said Thursday.

The market expectation for GDP was to show an increase of 0.4% on a monthly basis.

"Services-producing industries increased 0.7% in January, led by a rebound in educational services following the resolution of the public sector strikes in Quebec in November and December," Statistics Canada said in a statement.

"Goods-producing industries were up 0.2% in January 2024 with the utilities and manufacturing sectors rebounding from declines in the previous month," it added.

Overall, 18 of 20 industrial sectors showed in January, the agency said.

Educational services sector was the largest contributor to growth with an increase of 0.6%.

The health care and social assistance sector rose 0.8%, recording the largest growth rate since October 2020.