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RTRS: UPDATE 1-Canada economy stalls in Feb, oil support services drop
 
OTTAWA, April 30 (Reuters) - The Canadian economy stalled in February as a pickup in the retail sector was offset by a decline in manufacturing and a steep drop in support activities for the mining and energy sector, data from Statistics Canada showed on Thursday.

Gross domestic product was unchanged in the second month of the year, though that topped economists' expectations for a decline of 0.1 percent. January was revised down to a decline of 0.2 percent.

Economists are watching to see how the economy is coping with the drop in the price of oil, a major export for Canada. The Bank of Canada expects the first quarter will see no growth, with the impact of cheap crude likely to be front-loaded to the beginning of the year.

Although oil and gas extraction edged up 0.1 percent in February, support activities for the mining and energy sector tumbled 15.4 percent on a drop in rigging and drilling services. It was the biggest decline since March 2009.

Manufacturing activity fell 0.8 percent, driven lower by a decrease in durable goods manufacturing. Overall, the goods producing sector declined 0.2 percent.

The service sector fared better, rising 0.1 percent. Retail trade climbed 1.5 percent for its first increase in three months. Gains in the industry were broad, including an increase in sales at merchandise stores and at motor vehicle and parts dealers.
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