The Canadian economy expanded by 1.8 per cent between April and June, according to Statistics Canada, just a touch above the consensus forecast and more or less in line with the Bank of Canada’s slightly more optimistic projection of 1.9 per cent.
Housing demand advances
Investment in housing advanced 0.4% in the second quarter, the sixth consecutive quarterly gain. However, this gain was below the 2.7% increase in the previous quarter.
New housing construction increased 4.0% following a 3.9% rise in the previous quarter. This second quarter increase was dampened by a 1.5% decline in renovation activity, as well as a 4.0% decline in ownership transfer costs as housing resale activity slowed.