07:29 AM EDT, 03/28/2025 (MT Newswires) -- Investors will get the Canadian real gross domestic product report for January at 8:30 a.m. ET Friday, noted Bank of Montreal (BMO).

The bank said that, to front-load activity ahead of potential tariffs, GDP growth likely ramped up in January with a 0.4% month-over-month increase expected. Manufacturing sales, wholesale trade, and international trade had big increases in the month, fuelling BMO's strong estimate.

There was some cooling in retail sales, as consumers splurged early in the tax holiday only to ease a bit in January. Home sales dipped in the month as well, as fixed mortgage rates held above 4% and economic uncertainty was building. Unfortunately, the anticipated January strength is expected to give way to potentially extreme weakness in February as uncertainty really ramped up, with a further deterioration in March as tariffs were put in place.

Expect a challenging spring for the Canadian economy, stated BMO.

The Canadian dollar (CAD or loonie) continues to hold its ground at just under 70 US cents ($1.433/USD), added the bank.