Statistics Canada says the economy grew for a fourth straight month in February, though there were signs momentum was fading toward the end of the first quarter.

The agency said Thursday that real gross domestic product rose 0.2 per cent in February, led by a 1.8 per cent gain in the manufacturing sector — its fastest pace of growth in more than three years.

The machinery subsector led growth in the month, followed by gains in transportation equipment manufacturing. Statistics Canada noted that several auto assembly plants in Ontario were ramping back up in February after shutting down for retooling and maintenance the previous month.

On an annual basis, manufacturing activity was 3.1 per cent lower in February, following nearly a year of tariffs and trade threats from the United States.

The wholesale trade and transportation and warehousing sectors also helped lift the economy in February, while a contraction in the public sector and a slowdown in the arts, entertainment and recreation industry weighed on growth.

Statistics Canada said spectator sports activity was depressed in February as the NHL paused for two weeks while athletes competed at the Olympics Games in Italy.

The February gains were in line with Statistics Canada’s early estimates for the month and marked the fourth month in a row of economic growth. A sharp economic contraction in October pulled the final quarter of 2025 into slightly negative territory overall.

The agency’s initial estimates for March suggest real GDP was essentially unchanged in the month, which would set up the first quarter for an annualized growth rate of 1.7 per cent.

It said further gains in the wholesale trade and transportation and warehousing sectors in March were offset by declines in retail trade as well as mining, quarrying and oil and gas extraction. Statistics Canada officials said seasonal maintenance in the energy sector and an explosion at a key refinery in Texas that month likely slowed oil flows from the industry.

The Bank of Canada’s monetary policy report, published alongside its rate decision Wednesday, called for 1.5 per cent annualized growth in the first quarter.

Statistics Canada’s updated figures for March GDP and the first quarter will be published at the end of May.