Housing market weakness highlighted in GDP data

By Steve Randall

Investment in home construction weakened in the second quarter of 2017 the latest GDP data shows.

Statistics Canada reported Thursday that Canada’s economy grew by 1.1% in the second quarter with an annualized rate of 4.5%.

But investment in home construction was down 1.2% compared to a 2.9% gain in the previous quarter. The decrease was due to a 6.7% decline in ownership transfer costs.

New housing construction investment was virtually unchanged while renovations increased 1.1%.

The data also revealed that household spending on goods was up 1.9% in the second quarter with new car purchases one of the key influences.

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