09:01 AM EDT, 03/28/2025 (MT Newswires) -- Canadian monthly real gross domestic product rose 0.4% month over month, one tick above the consensus expectation, said Desjardins after Friday's data.

That strength came primarily from the oil and natural gas sector, although goods-producing industries more broadly posted the fastest pace of growth since October 2021, noted the bank. The retail sector exhibited notable weakness, but that comes after a stronger December, which was likely aided by rebates on electric vehicles.

Statistics Canada's flash estimate for February showed that real GDP likely stalled as trade tensions with the United States heated up. An ice-cold month for the real estate sector along with another weak reading for retailing and some mean-reversion in oil and gas offset gains in other categories, stated the bank.

Following the release, the bank's GDP tracking for Q1 is roughly in line with the Bank of Canada's latest estimate of 2.0%. The data Desjardins has in hand doesn't fully reflect the ongoing headwinds from the trade war with the U.S.

As such, the data on Friday is unlikely to change the BoC's view on policy near-term and hasn't moved markets much, according to the bank.