By Julie Gordon

OTTAWA, (Reuters) – The Canadian economy gained considerable momentum in February. It grew for a ninth consecutive monthly month, following a January increase that exceeded expectations.

In a quick estimate, Statscan stated that February’s real gross domestic product probably grew 0.8%, owing to increases in resources and manufacturing. According to analysts’ expectations, the economy grew 0.2% in January. This was due to strong performance in the goods sector.

Statscan reported that Canada’s economy has increased 1.2% since February. This is 1.2% more than it was before the pandemic. This strength will increase pressure on Bank of Canada to aggressively hike rates when they meet in April.

The Omicron coronavirus spread led to increased restrictions on accommodation services. In January, this caused the flattening of services. But, the February flash estimate indicated that there was a partial reverse in the situation for these subsectors.

Statscan stated that the retail sector grew, with motor vehicle and parts leading the charge. The earlier rebound of car imports had injected needed supply into dealer lots. Also, home furniture and building materials saw an increase.

Statistics Canada has revised the December GDP Growth Rate to 0.1%, from flat.