September 2014 Canadian Economic Fundamentals
- Thread starter Ally
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Canada's economy gains traction
More evidence that Canada`s economy is gaining traction came from the country`s latest wholesale trade data. According to Statistics Canada (StatCan), June wholesale trade climbed 0.6 percent month over month, to CAD53.0 billion, beating the consensus forecast among economists by a significant two-tenths of a percentage point.
Wholesale trade is considered an economic bellwether, so it`s an area that we`ve been monitoring closely for clues about the trend of the overall economy. June was the third consecutive month in which wholesale trade increased, which augurs well for second-quarter gross domestic product (GDP) growth.
Read the full article here.
More evidence that Canada`s economy is gaining traction came from the country`s latest wholesale trade data. According to Statistics Canada (StatCan), June wholesale trade climbed 0.6 percent month over month, to CAD53.0 billion, beating the consensus forecast among economists by a significant two-tenths of a percentage point.
Wholesale trade is considered an economic bellwether, so it`s an area that we`ve been monitoring closely for clues about the trend of the overall economy. June was the third consecutive month in which wholesale trade increased, which augurs well for second-quarter gross domestic product (GDP) growth.
Read the full article here.
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Real estate: Long flip vs. quick flip
Cindy Wennerstrom is a bit of a hoarder. But the 39-year-old Toronto MBA grad doesn`t collect shoes or keep old magazines. Houses are her thing.
`I wanted to take control of my future. And what I really loved to do was renovate, have tenants and make great homes for people,` she says. `As soon as I set that course, within a year it was happening.`
Read the full article here.
Cindy Wennerstrom is a bit of a hoarder. But the 39-year-old Toronto MBA grad doesn`t collect shoes or keep old magazines. Houses are her thing.
`I wanted to take control of my future. And what I really loved to do was renovate, have tenants and make great homes for people,` she says. `As soon as I set that course, within a year it was happening.`
Read the full article here.
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The stars and the dogs of Canadian cities
Statistics Canada's latest tabulation of incomes by city confirms in hard data what we often discern through casual observation: we live in an economically diverse country, one in which incomes vary greatly among households but also across communities.
As in previous years, the agency has collected and published information on incomes for 33 metropolitan areas. This includes data on "census families" ` defined as a married or common-law couple with or without children at home, or a lone parent with one or more dependent children. For each urban area, Statistics Canada estimates the median pre-tax census family income for 2012. Median refers to the exact mid-point of the income distribution: half of families have incomes above, and half below, the reported median. The median is a good measure of the financial resources available to a "typical" family, in part because it isn't distorted by the abnormally high incomes that accrue to a small number of families at the very top of the distribution.
Read the full article here.
Statistics Canada's latest tabulation of incomes by city confirms in hard data what we often discern through casual observation: we live in an economically diverse country, one in which incomes vary greatly among households but also across communities.
As in previous years, the agency has collected and published information on incomes for 33 metropolitan areas. This includes data on "census families" ` defined as a married or common-law couple with or without children at home, or a lone parent with one or more dependent children. For each urban area, Statistics Canada estimates the median pre-tax census family income for 2012. Median refers to the exact mid-point of the income distribution: half of families have incomes above, and half below, the reported median. The median is a good measure of the financial resources available to a "typical" family, in part because it isn't distorted by the abnormally high incomes that accrue to a small number of families at the very top of the distribution.
Read the full article here.
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House prices keep going up, but they are more affordable thanks to cheap debt
House prices keep going up in most parts of the country but affordability improved last quarter, according to one of the country`s major banks.
Royal Bank of Canada chalked up the apparent discrepancy to mortgage rates, which continue to hover near all-time lows and have reduced interest costs.
Read the full article here.
House prices keep going up in most parts of the country but affordability improved last quarter, according to one of the country`s major banks.
Royal Bank of Canada chalked up the apparent discrepancy to mortgage rates, which continue to hover near all-time lows and have reduced interest costs.
Read the full article here.
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Workers in Western Canada set for biggest raises next year
If you`re fortunate enough to be gainfully employed in Calgary, Saskatoon or Regina, next year could well bring with it a comfortable pay hike.
Alberta and Saskatchewan, whose resource-based economies are leaving the rest of the country in the dust, again top an annual monitor of wage growth across provinces and cities.
Read the full article here.
If you`re fortunate enough to be gainfully employed in Calgary, Saskatoon or Regina, next year could well bring with it a comfortable pay hike.
Alberta and Saskatchewan, whose resource-based economies are leaving the rest of the country in the dust, again top an annual monitor of wage growth across provinces and cities.
Read the full article here.
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Canadian economy posts strongest numbers since 2011 in Q2
After a strong increase in May, manufacturing activity across Canada dipped slightly in June. However, momentum from earlier in the year propelled the manufacturing sector to a strong overall performance in the second quarter of 2014. Manufacturing GDP was up 0.8 per cent from April-June, and has risen in five of the last six quarters.
On a year-over-year basis, manufacturing GDP in June was 3.4 per cent higher than the same month last year, compared to 3.1 per cent for the economy as a whole.
Read the full article here.
After a strong increase in May, manufacturing activity across Canada dipped slightly in June. However, momentum from earlier in the year propelled the manufacturing sector to a strong overall performance in the second quarter of 2014. Manufacturing GDP was up 0.8 per cent from April-June, and has risen in five of the last six quarters.
On a year-over-year basis, manufacturing GDP in June was 3.4 per cent higher than the same month last year, compared to 3.1 per cent for the economy as a whole.
Read the full article here.
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Bank of Canada keeping overnight interest rate at 1%
OTTAWA - The Bank of Canada held its trend-setting interest rate at one per cent on Wednesday as it said there needs to be continued growth in Canada's exports before companies increase their investment and hiring.
The central bank also noted activity in the housing market is stronger than previously thought.
Read the full article here.
OTTAWA - The Bank of Canada held its trend-setting interest rate at one per cent on Wednesday as it said there needs to be continued growth in Canada's exports before companies increase their investment and hiring.
The central bank also noted activity in the housing market is stronger than previously thought.
Read the full article here.
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Canadian economy can't sustain growth without low interest rates and a weaker dollar
Exports and business investment finally showing signs of taking over from consumer spending and housing
Unexpected growth in consumer spending and residential construction have seen the Canadian economy outperform in 2014, but continued low interest rates and a cheaper loonie are necessary to sustain growth going forward, finds a new report from CIBC World Markets.
Read the full article here.
Exports and business investment finally showing signs of taking over from consumer spending and housing
Unexpected growth in consumer spending and residential construction have seen the Canadian economy outperform in 2014, but continued low interest rates and a cheaper loonie are necessary to sustain growth going forward, finds a new report from CIBC World Markets.
Read the full article here.
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Canada consumer debt rises, but delinquencies at new low
TORONTO (Reuters) - Canadian consumers took on more debt in the second quarter as credit card and loan balances rose, but the delinquency rate continued to decline as indebted Canadians found ways to pay their bills, a report showed on Thursday.
Canadian consumers owed C$1.45 trillion ($1.34 trillion) in the second quarter of 2014, up 1.8 percent from the first quarter and 7.2 percent compared with a year earlier, credit monitoring firm Equifax Canada said in a report.
Read the full article here.
TORONTO (Reuters) - Canadian consumers took on more debt in the second quarter as credit card and loan balances rose, but the delinquency rate continued to decline as indebted Canadians found ways to pay their bills, a report showed on Thursday.
Canadian consumers owed C$1.45 trillion ($1.34 trillion) in the second quarter of 2014, up 1.8 percent from the first quarter and 7.2 percent compared with a year earlier, credit monitoring firm Equifax Canada said in a report.
Read the full article here.
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House prices in Canada's major cities setting hot pace, but for how long?
We won`t get a complete picture of sales and prices in August for a couple of weeks, but preliminary figures from local real estate boards suggest there`s plenty of momentum. And that has some economists wondering about how long this will last.
`Existing-home sales remained strong in a number of major cities in August and prices continued to outrun income,` Bank of Montreal economist Sal Guatieri wrote in a research note. `How long prices can continue to outpace family income in these major cities is unknown, but it can`t go on forever. The longer it does, the greater the risk of a correction when interest rates rise.`
Read the full article here.
We won`t get a complete picture of sales and prices in August for a couple of weeks, but preliminary figures from local real estate boards suggest there`s plenty of momentum. And that has some economists wondering about how long this will last.
`Existing-home sales remained strong in a number of major cities in August and prices continued to outrun income,` Bank of Montreal economist Sal Guatieri wrote in a research note. `How long prices can continue to outpace family income in these major cities is unknown, but it can`t go on forever. The longer it does, the greater the risk of a correction when interest rates rise.`
Read the full article here.
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Housing more affordable in second quarter as low rates offset high home prices
TORONTO - The Royal Bank (TSX:RY.TO - News) says housing was more affordable across Canada in the second quarter as low mortgage rates offset solid price increases.
In its latest Housing Trends and Affordability Report, the bank says it found that owning a home was more affordable in virtually all provincial and major local markets in the quarter.
Read the full article here.
TORONTO - The Royal Bank (TSX:RY.TO - News) says housing was more affordable across Canada in the second quarter as low mortgage rates offset solid price increases.
In its latest Housing Trends and Affordability Report, the bank says it found that owning a home was more affordable in virtually all provincial and major local markets in the quarter.
Read the full article here.
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Economists question new August job numbers after last month's botched effort
OTTAWA - Canada's economy unexpectedly shed jobs in August due to heavy losses in the private sector, raising the eyebrows of economists who widely expected a modest gain in Statistics Canada's flagship monthly report.
Read the full article here.
OTTAWA - Canada's economy unexpectedly shed jobs in August due to heavy losses in the private sector, raising the eyebrows of economists who widely expected a modest gain in Statistics Canada's flagship monthly report.
Read the full article here.
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Higher exports, business investment needed to support economic growth
HALIFAX, NS] - Exports and business investment should accelerate over the next couple of years, helping to ensure sustainable growth in the Canadian economy, according to a new report from CIBC World Markets which came out on the same day that Statistics Canada reported a major improvement in the country's merchandise trade balance.
Read the full article here.
HALIFAX, NS] - Exports and business investment should accelerate over the next couple of years, helping to ensure sustainable growth in the Canadian economy, according to a new report from CIBC World Markets which came out on the same day that Statistics Canada reported a major improvement in the country's merchandise trade balance.
Read the full article here.
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'Move up' market taking a hit as prices of bigger homes swell
Having trouble moving into a bigger home? You`re not alone.
Prices of bigger and more expensive homes in Canada are rising significantly faster than those of cheaper properties, Canadian Imperial Bank of Commerce economist Benjamin Tal has found. The phenomenon is limiting peoples` ability to trade up, and causing many to choose to renovate their existing home instead.
Read the full article here.
Having trouble moving into a bigger home? You`re not alone.
Prices of bigger and more expensive homes in Canada are rising significantly faster than those of cheaper properties, Canadian Imperial Bank of Commerce economist Benjamin Tal has found. The phenomenon is limiting peoples` ability to trade up, and causing many to choose to renovate their existing home instead.
Read the full article here.
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The key to real estate investing? It's all local
Investors, even professional ones, have a tendency to lump real estate investments into one bucket, but that is unhelpful when allocating investment dollars and assessing how risk is spread across a portfolio.
To illustrate this point, I was in a recent investment committee meeting for a large endowment fund at which two real estate investments were up for consideration. The first was a mortgage fund, mostly made up of low loan-to-value construction mortgages for commercial projects in Alberta and Saskatchewan. The second was a REIT that owns apartment complexes in Ontario and Quebec.
Read the full article here.
Investors, even professional ones, have a tendency to lump real estate investments into one bucket, but that is unhelpful when allocating investment dollars and assessing how risk is spread across a portfolio.
To illustrate this point, I was in a recent investment committee meeting for a large endowment fund at which two real estate investments were up for consideration. The first was a mortgage fund, mostly made up of low loan-to-value construction mortgages for commercial projects in Alberta and Saskatchewan. The second was a REIT that owns apartment complexes in Ontario and Quebec.
Read the full article here.
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August 2014 housing starts in Canada
The trend measure of housing starts in Canada was 189,837 units in August compared to 189,596 in July, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR)(1)of housing starts.
"The currently elevated level of inventory of newly completed and unoccupied condominiums, and units under construction, supports CMHC's view that condominium starts will likely see a declining trend over the coming months as developers and builders seek to limit risks of over-building," said Bob Dugan, CMHC's Chief Economist. "However, there may still be some variability from month to month as the number of presales for some planned condominium projects reaches sufficient levels to trigger project start," added Dugan.
Read the full article here.
The trend measure of housing starts in Canada was 189,837 units in August compared to 189,596 in July, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR)(1)of housing starts.
"The currently elevated level of inventory of newly completed and unoccupied condominiums, and units under construction, supports CMHC's view that condominium starts will likely see a declining trend over the coming months as developers and builders seek to limit risks of over-building," said Bob Dugan, CMHC's Chief Economist. "However, there may still be some variability from month to month as the number of presales for some planned condominium projects reaches sufficient levels to trigger project start," added Dugan.
Read the full article here.
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CMHC could force banks to pay deductibles on mortgage insurance
The Canada Mortgage and Housing Corp. is looking at a new formula to push some of its losses on to financial institutions, essentially forcing them to pay a deductible on mortgages insured with the Crown corporation before claims are paid, according to sources.
Read the full article here.
The Canada Mortgage and Housing Corp. is looking at a new formula to push some of its losses on to financial institutions, essentially forcing them to pay a deductible on mortgages insured with the Crown corporation before claims are paid, according to sources.
Read the full article here.