Ottawa — Economic growth resumed in January after declining slightly in December, Statistics Canada said on Friday.

Gross domestic product rose 0.5% in the first month of the year after contracting 0.1% in the final month of 2022, the federal agency said.

Statistics Canada’s preliminary forecast for the month of February projects growth of 0.3%, but reminded that this data would be revised by the official release in a month’s time.

“There have been many signs that the economy has got off to a strong start into 2023, but today’s burst of strength far exceeds even the most optimistic view,” Bank of Montreal chief economist Douglas Porter wrote in a report.

“Even if growth is flat in March, it now looks like the first quarter will show 2.5% growth compared to flat in the fourth quarter.” As we continue to expect a noticeable slowdown over the next two quarters, we are raising our full-year GDP growth estimate for 2023 […] at 1.0%.”

Manufacturing industries rose 0.4% in January, while services manufacturing industries rose 0.6%.

Statistics Canada pointed out that many of the key drivers of growth in January were also the largest contributors to the decline in December.

Growth in January was driven by the wholesale, transportation & warehousing, mining & quarrying, and oil & gas exploration sectors, all of which declined in December.

Wholesale trade rose 1.8% in January, helped by wholesalers of machinery, equipment and supplies, while mining, quarrying and oil & gas production rose 1.1% after falling 3.3% in December.

The transportation and storage sector rose 1.9% in January, more than offsetting a 1.1% decline in December, which was driven by poor weather conditions.