09:24 AM EDT, 04/30/2025 (MT Newswires) -- Canada's real economic activity declined 0.2% month over month in February, partially offsetting the strong 0.4% month-over-month increase in January, said Desjardins.

Mining, oil and natural gas posted the largest declines, but losses were seen across sectors. Overall, 11 of 20 categories were lower during the month, with adverse weather conditions playing a role in restraining activity, noted the bank on Wednesday.

Manufacturing, however, was a bright spot, with activity potentially picking up as a result of increased demand from United States buyers trying to get ahead of tariffs, stated Desjardins. More than 40% of manufacturing demand stems from the U.S.

Statistics Canada's flash estimate for March showed a slight rebound, with GDP up 0.1% month over month.

The bank's tracking for Q1 suggests growth of 1.7%, roughly in line with the Bank of Canada's latest projection. That said, it's clear that momentum is waning after a hot start to the year.

Desjardins continues to see central bankers resuming their rate-cutting cycle in June.

Markets haven't moved much on Wednesday's data, added the bank.