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The tempo of financial development in Canada slowed within the first quarter of this yr to its lowest price in practically two years as housing funding pulled again amid new mortgage stress take a look at guidelines and a cooling housing market.
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Statistics Canada mentioned Thursday the economic system grew at an annualized tempo of 1.Three per cent for the primary three months of the yr. That in contrast with an annual tempo of 1.7 per cent within the closing three months of 2017. Economists had anticipated development to come back in at an annualized price of 1.eight per cent for the primary quarter of 2018, in line with Thomson Reuters Eikon.
The price of development for actual gross home product within the first quarter was the slowest tempo for the reason that economic system contracted within the second quarter of 2016 resulting from forest fires that destroyed components of Fort McMurray, Alta., and compelled the shutdown of a number of oilsands operations within the area.
In the newest quarter, funding in housing fell 1.9 per cent, the most important decline for the reason that first quarter of 2009, resulting from a drop in possession switch prices because the tempo of residence gross sales slowed initially of the yr. Meanwhile, family spending elevated 0.Three per cent, the slowest tempo for the reason that first quarter of 2015, whereas family spending on providers elevated 0.5 per cent and spending on items was unchanged.
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Growth in export volumes slowed to 0.Four per cent in contrast with one per cent within the fourth quarter of 2017. The good points had been primarily contributed by crude oil and bitumen and the export of providers. Imports rose 1.2 per cent within the quarter. Business funding in equipment and gear rose 4.2 per cent, whereas mental property merchandise rose 3.Three per cent.
Looking again at 2017, Statistics Canada revised its actual GDP numbers upward for the second and third quarters. For the second quarter of 2017, the estimate for the annualized development price was elevated to 4.6 per cent in contrast with a March estimate of 4.Four per cent, whereas the estimate for the third quarter was elevated to 1.7 per cent from 1.5 per cent.
The newest studying on the economic system follows the Bank of Canada’s resolution to maintain its key rate of interest on maintain.
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