The Canadian economy grew 0.5 per cent in January, bouncing back from a largely weather induced dip in output in December. At the industry level, growth was led by rising output in the manufacturing industry as well as lesser contributions from mining, oil and gas, and construction. Economic growth was expected to slow in the first quarter of 2014, and with today's release, our quarterly tracking estimate is indicating that real GDP will slow to about 2 per cent from 2.9 per cent in the previous quarter. The stronger than expected start to the year has sent Canadian bond yields modestly higher, though not enough to put any pressure on mortgage rates.
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