Canada: Strong housing data - NBF

Sandeep Kanihama FXStreet Contributor

Analysts at National Bank Financial notes that Canadian housing starts were significantly up in June due to a large upward swing in the urban multiple category.

Key Quotes

“The breakdown reveals an expansion stemming from Ontario and Quebec, specifically with Toronto and Montreal seeing monthly jumps of 231% and 68% respectively in the multi category.”

“Although these results come after a slight faltering in the prior month the upswing was not too surprising due to demand being tilted towards the urban multiple category given sustained pressure for more affordable housing, especially in an environment of stricter mortgage requirements.”

“Looking at the quarterly picture, housing starts countrywide are on pace to contract an annualized 9.0% in Q2 and that on the back of an 8.0% decline in Q1. That may translate into a negative contribution to growth from residential construction in the second quarter of 2018.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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