* Economy grows 0.5 pct in Jan; fell 0.5 pct in Dec
* Severe weather had cut into December output
* Real-dollar output in Jan still lower than it was in Nov
* Payrolls report shows jobs decline, not gain, in Jan
(Adds analysts' comments, weekly earnings, paragraphs 4, 6-8)
By Randall Palmer
OTTAWA, March 31 The Canadian economy bounced
back more strongly than expected in January from a
weather-induced decline in December but failed to regain all the
output that was lost in the final month of 2013, Statistics
Canada said on Monday.
Gross domestic product (GDP) showed real, seasonally
adjusted growth of 0.5 percent in January after December's 0.5
percent decline. That was at the top end of a range of estimates
in a Reuters survey of analysts. The median forecast was for 0.4
But in inflation-adjusted dollar terms, GDP was still a
shade lower in January than it was in November.
"Markets will draw comfort from the confirmation that
December's dive was indeed a weather disruption rather than a
sign of things to come," said CIBC World Markets chief economist
The production of goods in January rose by 1.0 percent, led
by bouncebacks in manufacturing, mining, construction, and oil
and gas extraction. Services rose by 0.3 percent with gains in
most sectors. January's percentage gains in goods and services
exactly mirrored December's declines.
"The Canadian economy had a bit more energy than expected at
the start of the year, managing to rebound nicely from the
December ice storm as well as braving the unusual cold in
January," Bank of Montreal chief economist Doug Porter said.
"While no one would mistake growth for being robust, it does
look sturdy enough to top the economy's 2 percent potential
growth rate this year. The uptick in wages is an added bonus for
A separate Statistics Canada report on payrollls on Monday
showed weekly earnings rose 3.0 percent in January from a year
The survey also showed a loss of 7,000 jobs in the month.
Statistics Canada's much more timely but more volatile Labour
Force Survey had reported a gain of 29,400 jobs in January,
followed by a loss of 7,000 in February.
(Editing by Chizu Nomiyama; and Peter Galloway)