ECONOMY GETS SLOW START IN '98
By Adnews Staff
The Canadian economy got off to a bad start this year because of the ice storm that gripped Quebec, parts of Ontario and New Brunswick, as well as a slower auto industry, according to Statistics Canada. The country's gross domestic produce fell .7% in January from December, with the ice storm directly accounting for one-third of the drop. Indirectly, it may have been more responsible for the decline. Output from the auto industry also dropped because plants were closed either for retooling or because their inventories had grown too large. The weakness in manufacturing was widespread, with declines being reported in 19 of 22 major industry groups, which account for 80% of factory production. Output in the machinery industry fell for a third consecutive month. Statistics Canada says the results should be considered "volatile" because of the ice storm. In addition, the figures account only for lost output. They do not account the destruction of buildings, property and the power system caused by the ice storm.