• PMI SA 51.1 vs exp 57.5
• Q4 GDP showed solid growth across most domestic components, offsetting sharp drop in inventories
• Core total inflation to stay low near term, gradual rise to 2% through 2014
• Low core inflation reflects muted price pressuresa
• total CPI more subdued than January projection, due to weaker core CPI and lower mortgage costs
• low foreign demand, competitiveness challenges, inclusing persistent C$ strength, to keep exports below pre-recession peak
• growth to pick up through 2013, expect modest household spending growth, export recovery, business investment