Treb Economic Commentary

Date: January 29, 2009 Canadian Real GDP, Quarterly Canadian Gross Domestic Product, November 2009 Annualized Quarter-Over-Quarter Per Cent Change Source: Statistics Canada 6% 4% Link to Release: 2% http://www.statcan.gc.ca/daily-quotidien/100129/dq100129a-eng.htm 0% -2% Summary: Canada’s broad measure of economic growth – Real Gross -4% Domestic Product (GDP) – grew at a monthly rate of 0.4 per cent in November. -6% This was the third straight monthly increase in real GDP. Goods producing -8% industries (mining, manufacturing, construction etc.) grew by 0.6 per cent and service producing industries (business services, finance, insurance and real estate, education etc.) grew by 0.4 per cent. Source: Statistics Canada Analysis: With the goods producing sector leading the way in November, it was Canadian Real GDP, Monthly interesting to note the continued positive impact of residential real estate, with Month-Over-Month Per Cent Change the construction sector posting a monthly increase of 1.1 per cent. The 0.8% residential component of construction was up by 2.5 per cent. Increased home construction activity had a lot to do with tightening resale markets in the second 0.4% half of 2009. While existing home sales rebounded strongly, listings remained 0.0% low from a historic perspective. This meant that some home buyers spilled over -0.4% into new home sales centres. Increased new home sales eventually fed through into more home starts. The construction sector has linkages to many other -0.8% sectors of the economy, from raw materials and manufactured goods through to -1.2% real estate and financial services. Indeed, a large share of home builders ® cooperate with REALTORS who bring their clients to new home sales centres. Source: Statistics Canada Written By: Jason Mercer TREB Senior Manager of Market Analysis. jmercer@trebnet.com

Treb Economic Commentary

by Ruth Ballantyne on Feb 01, 2010

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Treb Economic Commentary — Presentation Transcript