“Canadian homebuilding activity remains robust, with the best population growth in 25 years proving fundamental support. And, after declining modestly in Q2, residential investment looks to have added to growth again in Q3.†(BMO EconoFacts, October 10, 2017)
Canadian housing starts fell in September after eight straight monthly gains. Nonetheless, the housing construction sector remains quite strong and the data suggest that residential construction will boost economic growth in the third quarter.
Canadian housing starts slipped to 217,100 annualized units in September from 225,900 units in the previous month.
In the month of September, starts declined in Ontario, Manitoba, and Saskatchewan, but rose in the other economic regions.
 With starts higher in the third quarter than the second (221.7K versus 206.6K) residential construction likely boosted Canadian economic growth in the third quarter.
The strong start numbers this year are clearly a reflection of the improving Canadian job market and low-interest rates by historical standards.Â
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