Article content

Good Morning!

We apologize, but this video has failed to load.

tap here to see other videos from our team. Try refreshing your browser, or Posthaste: Why the housing market may not save us from a protracted economic slowdown this time around Back to video

The standalone monthly seasonally adjusted annual rates of housing starts was 221,202 units in September, down 2.5 per cent from 226,871 units in August, according to Canada Mortgage and Housing Corporation (CMHC).

Economists are pointing to trouble ahead for the economy, amid the lacklustre economic data points.

“While we could get some growth from real estate agents fees and renovations, the pop in GDP growth we got from housing in Q2 is likely to be be less vigorous in the next couple of quarters,” said Avery Shenfeld at CIBC Capital Markets.

Housing is one of the few remaining growth engines in an economy that appears to be running out of steam. The Macdonald-Laurier Institute’s Leading Economic Indicator (LEI), that predicts changes in the Canadian business cycle, rose by 0.2 per cent in August, somewhat lower than previous months but still a six straight month of growth. Indeed, much of the positive economic activity remained concentrated in the housing market, MLI said in a report.